Crypto24 September, 20262 min read
Magic Eden Security Scare Puts 3,832 NFTs in Whitehat Protective Custody
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A whitehat moved 3,832 NFTs from hundreds of wallets amid Magic Eden vulnerability. NFTs placed in whitehat protective custody and will be returned once risk passes.
Hack headlines, prices rise
Crypto markets climbed even as Coin Gabbar described three major incidents in a single day, with Bitget confirming a major breach, Magic Eden flagging a security scare, and Meter's chain suffering an exploit. Total value across digital assets was back in the green at $2.97 trillion, up 1.6% in a day, while Bitcoin traded at $84,691.11 (up 1.8%), Ethereum at $2,708.78 (up 2.5%), and XRP at $1.56 (up 6.7%). Spot ETF inflows helped drive the rally, with spot Bitcoin ETFs pulling in $190.65 million, marking a sixth straight day of inflows, and spot Ethereum ETFs adding $66.01 million, their fifth consecutive positive day.
The Federal Reserve proposed two new stablecoin rules under the GENIUS Act, including a requirement that Board-supervised stablecoin issuers fully back their tokens with safe reserve assets. Bitget's CEO claimed the $350 million hack is very likely linked to North Korea, while Meter's exploit drained $2.3 million after an attacker used a block validation flaw to mint coins not backed by real reserves.
3,832 NFTs moved
Magic Eden scare coverage centered on a white-hat operation in which a single wallet moved 3,832 non-fungible tokens from hundreds of wallets, after Cirrus on X flagged the activity. Cirrus warned that the transactions appeared as sales through Magic Eden and advised NFT holders to revoke permissions as a precaution, while Yuga Labs’ pseudonymous vice president of blockchain, 0xQuit, said the NFTs held in the receiving wallet are safe and “will be returned once they are no longer at risk.” Magic Eden had not publicly confirmed that its contracts were exploited, and Cointelegraph contacted Magic Eden for comment but had not received a response by publication.
TradingView echoed the same sequence, stating that 0xQuit described the transfers as part of a white-hat operation and that he said the NFTs held in the receiving wallet are safe and “will be returned once they are no longer at risk.” TradingView also repeated that Cirrus advised NFT holders to revoke permissions as a precaution after the activity appeared as sales through Magic Eden.
Approvals and risk management
Users were urged to revoke approvals for Ethereum and ApeChain payment processors after a security alert, with the warning tied to suspected security issues linked to NFT marketplace activity. The warning targeted Ethereum Payment Processor V2 and ApeChain Payment Processor V3 smart contracts, and it pointed users to revoke.cash to remove contract approvals and protect their assets. The white-hat transfer moved 3,832 NFTs worth about $1.5 million from hundreds of wallets to a secure address, with plans to return them after resolving the risk.
“Users urged to revoke approvals for Ethereum and ApeChain payment processors after security alert.”
The Crypto Times framed the same episode as raising concerns over old Magic Eden permissions, stating that the NFTs changed hands for 0 ETH and that this “raises fresh concerns over old Magic Eden permissions that may still give contracts access to users’ assets.” 0xQuit told Cirrus, “hey ya this is a whitehat, and everything in 0x71cF3f5724bD2B72Ef6464992aCd26216DE7fe33 is safe and will be returned once they are no longer at risk.”