On July 7, the Gutter Cat Gang NFT project fell victim to a SIM-swapping attack, resulting in the theft of over $765,000 worth of non-fungible tokens (NFTs). The security breach was brought to light by members of the NFT community, with Gutter Mitch, co-founder of Gutter Cat Gang, issuing a warning on Twitter about the hacking incident. The official Gutter Cat Gang account and co-founder Gutter Ric's account were both compromised in the attack.
The hackers utilized the compromised accounts to share links to fake limited-edition Gutter Cat Gang NFT sneaker airdrops, ultimately depleting the project's hot wallets as unsuspecting users clicked on the fraudulent links. The tweets appeared authentic, featuring recent Gut ter Cat Gang branding and the image of a shoe from the phygit campaign launched in collaboration with Puma and NBA/Charlotte Hornets star LaMelo Ball.
Blockchain sleuth ZachXBT pointed out that the team was likely hacked through a SIM swap attack, expressing concerns about the project's cybersecurity practices. He further emphasized the importance of implementing stronger security measures, particularly in light of re cent SIM swap attacks. ZachXBT also highlighted two victims of the attack, one losing a Bored Ape Yacht Club NFT valued at $65,913 and the other losing a collection of blue-chip stock NFTs worth up to $700,000.
Gutter Dan, another co-founder of Gutter Cat Gang, provided an update on the situation, stating that they were working with Twitter to regain access to the compromised accounts. He expressed sympathy for those affected by the attack and assured them that the matter was being taken seriously. The project is cooperating with law enforcement to investigate the hack and security breach. As of the time of writing, the compromised accounts remain under the control of the attackers.
The Gutter Cat Gang NFT project, consisting of 3,000 unique cartoon cat avatars, was launched in mid-2021. The current base price for these NFTs is 0.5 ETH, representing a substantial increase of nearly 615% from the original minting cost. The attack has raised concerns about the security of NFT projects and the need for stronger measures to protect users and their valuable digital assets.
