TreasureDAO Vulnerability Made Its NFTs Free: What's Happened Next?

A vulnerability in the non-fungible token (NFT) market TreasureDAO MAGIC/USD purportedly allowed attackers to acquire NFTs without incurring any cost.

What Happened: Harry Denley, the security specialist of cryptocurrency wallet software projects MetaMask and MyCrypo, verified claims that TreasureDAO contains a critical bug allowing attackers to acquire any NFT for free in a Thursday tweet.

The bug was brought to Denley's attention after reports started circulating on Twitter Inc TWTR that Smol Brains NFTs were sold on TreaasureDAO for a price of zero. The page dedicated to the collection shows the prices start at 2,469 MAGIC, the equivalent to more than $8,230 as of press time, and go up to 88,888 MAGIC for a maximum price in dollars of nearly $300,000.

Fortunately, most of the NFTs have now been returned by the attackers. Per a Thursday CoinDesk report, hackers started returning the NFTs after TreasureDAO team members announced they "have identified and rectified the cause of the issue." TreasureDAO promised the hack victims whose tokens aren't returned that they will be compensated by the decentralized autonomous organization (DAO) if the community vote allows for it.

TreasureDAO's team has not answered Benzinga's request for comment.

MAGIC Price Action: As of press time, MAGIC is trading at $3.01, 16.65% lower than what the token was worth 24 hours ago but also more than the low of $2.522 the token reached after going into freefall after the news first broke.

Photo: Smol Brains via TreasureDAO