Hackers have apparently stolen millions of dollars worth of non-fungible tokens (NFTs) in a recent security breach.
Peer-to-peer trading platform NFT Trader confirmed the breach on X Saturday (Dec. 16), saying it had “suffered an attack on old smart contracts.”
And the website Revoke.cash said that the stolen NFTs included 37 from the popular Bored Ape line, 13 from the Mutant Ape Yacht Club, as well as some from VeeFriends and World of Women NFTs, adding up to losses of nearly $3 million.
According to CoinTelegraph, the hack was followed by rumors and misinformation on social media, while it remains uncertain how many hackers were involved.
That report quotes a public message from one of the hackers, who said the original exploit was the work of a different user.
“I came here to pick up residual garbage,” they wrote, asking for a ransom to return the NFTs.
The breach follows a number of other attacks on digital asset platforms in recent weeks and months, including one last week at the crypto wallet firm Ledger in which hackers were able to make off with $484,000 after inserting malicious code into Ledger’s blockchain software,
“Ledger’s technology and security teams were alerted and a fix was deployed within 40 minutes of Ledger becoming aware,” Ledger said in a post on X. “The malicious file was live for around 5 hours, however we believe the window where funds were drained was limited to a period of less than two hours.”
Last week also brought the news that digital asset platform HTX had seen a $258 million net outflow following a hack of its own, in which HTX lost $30 million in crypto tokens, leading the company to suspend activity.
An HTX spokesperson told Bloomberg the outflow is “a small fraction of our total reserves, indicating a stable and robust platform” and added that the company is committed to offering a “secure and seamless” trading experience.
And in November, a hacker stole $27 million in crypto from a Binance-connected wallet, converting them to ether and then transferring them to other exchanges and bridges. September saw reports that digital asset transaction network Mixin had halted withdrawals and deposits following a $200 million hack.
The gig economy and gaming industries have driven a rise in ad hoc transactions, payments made outside of regular invoicing and payroll. Businesses are relying on instant payments to streamline these transactions, which involve contractors, consumers and small businesses.
According to a PYMNTS Intelligence report, “Gigs and Games: How Instant Payments Are Gaining Ground for Ad Hoc Transactions,” a collaboration with Ingo Payments, with increased demand for efficiency and speed, instant payment systems are becoming a preferred solution, though obstacles to wider adoption remain.
Instant payments are gaining in popularity for ad hoc transactions, according to the report. With the demand for quicker and more efficient methods of payment, businesses are adopting real-time payment systems to facilitate faster transactions, reduce fraud risk and improve overall financial processes.
PYMNTS found 45% of all ad hoc payments made in July 2024 were sent via instant methods, a notable increase from 36% earlier in the year. Industries that rely heavily on nonrecurring payments, such as gaming and the gig economy, have seen the most significant uptake.
Larger companies are leading the adoption of instant payments for ad hoc transactions. Businesses with more than $1 billion in revenue are sending half of their ad hoc payments via instant rails, revealing a preference for speed and efficiency. Smaller companies, however, are lagging in adoption, with those earning between $50 million and $100 million turning to instant methods for just 34% of ad hoc payments. The delay in adoption among smaller enterprises is often linked to the high costs of integrating instant payment systems into their existing processes.
Despite this, the trend toward adopting instant payment methods is gaining momentum across the board. Many large enterprises view instant payments as the future standard for ad hoc transactions, especially in business models that no longer rely on recurring payees, such as contractors or freelance workers. But challenges persist in scaling this technology across industries of all sizes.
While instant payments offer considerable benefits, particularly in terms of speed, cost savings, and enhanced customer/vendor retention, the report shows businesses face obstacles in fully adopting them. For many enterprises, the cost of integrating real-time payment systems remains the primary barrier. According to the report, 35% of businesses cite integration costs as the biggest obstacle to adopting instant payments for ad hoc transactions.
Additionally, there is a digital divide, with industries like gaming and the gig economy leading the charge in adopting instant payment systems. But two-thirds of small and medium-sized businesses (SMBs), particularly those in industries with less digital momentum, are dealing with the costs and complexities of implementing these systems. Despite these challenges, businesses that do embrace instant payments could gain a competitive edge by securing customer and vendor loyalty, driving down transaction costs, and improving cash flow management.