TreasureDAO NFT Market Hacked
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TreasureDAO has a NFT marketplace running on the Arbitum blockchain. A bug existed in the smart contract marketplace hot wallet where the NFTs could be taken by specifying a "quantity" of zero, at which point a price of 0 would be calculated for the item. This was exploited to steal hundreds of NFTs.
This is a global/international case not involving a specific country.[1][2][3][4][5][6][7][8][9][10][11][12][13][14][15][16]
About TreasureDAO
"Treasure is a decentralized NFT ecosystem on Arbitrum that is built specifically for metaverse projects. Every project listed on Treasure’s marketplace utilizes MAGIC in their respective metaverses, with each community inventing its own lore and storytelling for this resource. MAGIC, the native token of Treasure, is the sole currency for marketplace transactions. In this way, MAGIC acts as the reserve currency for the entire web of metaverses connected under the Treasure umbrella."
"Treasure bridges the growing network of metaverses through an open and composable approach to the convergence of NFTs, DeFi and Gaming." "Treasure projects are linked–narratively and economically–through MAGIC. The DAO uses MAGIC emissions to grow new projects and continue supporting more mature ones."
"Cross-ecosystem ties are bolstered through our interrelated resource model; $MAGIC (Power), Treasures (NFT | Resources) and Legions (NFT | Players)"
"Treasure DAO was hacked on March 3 at 7:33 a.m. (EST), according to a post mortem analysis authored by the security-focused firm Certik." "[A]n attacker discovered an exploit that resulted in the loss of “more than 100 NFTs from unsuspecting users."
“Treasure DAO, an NFT trading platform on Arbitrum, was exploited by an unknown attacker who took advantage of a flaw in the platform’s code,” Certik’s analysis details.
"Treasure DAO co-founder John Patten also tweeted about the event after the attacker stole the funds. “Treasure marketplace is being exploited. Please delist your items. We will cover the costs of the exploit—I will personally give up all of my Smols to repair this,” Patten said."
"I cannot fathom what subhuman targets a fair launch marketplace for robbery, but they will not defeat the community."
"A Crypto Twitter deep-dive reveals that TreasureDAO marketplace users started noticing zero price transactions going out of the marketplace. With team effort, users revealed that the underlying code of the platform allowed hackers to purchase previously listed NFTs for a price of 0 MAGIC."
"According to the Isotile team, a greater-than sign was missing in an important line of the code. This essentially allowed NFTs that had a quantity value of 0, to be sold for the same value of 0 MAGIC."
"The incoming _quantity parameter is not judged to be 0." "According to SlowMist analysis, the core of this vulnerability lies in the lack of judgment that the incoming _quantity parameter is not 0 before the ERC-721 standard NFT transfer, resulting in ERC -721 Standard NFT can be transferred directly and the cost of purchasing NFT is calculated as 0 when calculating the price."
“The attacker took advantage of an error in the marketplace’s Buyer.buyItem function, which allowed them to set the _quantity equal to 0,” Certik’s post mortem says. “With a quantity of 0, totalPrice is also 0, as totalPrice = _pricePerItem * _quantity. This means the attacker paid nothing for the NFTs they ‘purchased.’ As there is no requirement that _quantity > 0, the function executes normally. This bug could be resolved by requiring a greater than 0 value for the _quantity variable.”
"To illustrate, we use the above hack tx and show the key steps below: (1) Call buyItem() with valid NFT token and NFT ID, but w/ invalid ZERO quantity. (2) Treasure Marketplace sells the NFT but charges ZERO MAGIC (due to ZERO quantity)." "The hack is made possible due to a bug in distinguishing ERC721 and ERC1155 in buyItem(), which mis-calculates the price of ERC721 as ERC1155 with the (untrusted) given 0 quantity."
"The TreasureDAO team quickly shut down the smart contract that allowed the exploit, which successfully limited the damages users sustained."
"17 Smol Brains, the most popular NFTs traded on Arbitrum, were stolen. Based on their listed prices on the TreasureDAO platform, the total value of these pieces came up to be 426,511.38 in MAGIC. However, the dollar value of the loot was around 1.4 million."
"The company’s report notes that “over 100 NFTs were stolen in the attack,” as the attacker leveraged a vulnerability in the marketplace’s “buyer buy item” function." "According to the team behind virtual world Isolite, a total of 153 NFTs were stolen from the marketplace. The majority of them belonged to the Smol Brains collection, which is the most expensive project on the platform. At the time of writing, the cheapest Smol Brains NFT costs 2,469 MAGIC, or about $8,400."
"Certik’s analysis of the Treasure DAO situation notes that the protocol’s native token MAGIC shed over 40% in losses against the U.S. dollar." "The aforementioned hack also triggered a sharp fall in the price of MAGIC. It went from around $3.8 to as low as $2.6 on the charts, according to CoinGecko. Even so, worth pointing out that in the hours later, the alt’s price recovered somewhat."
"On further investigation, a blockchain address shared by Twitter sleuths gave some insight into the details associated with the exploit."
"Hours after it was stolen, developers confirmed that hackers had begun returning stolen “Smol Brains” and other NFTs."" “After some initial analysis and tracing of the hacker’s wallet on Twitter, many stolen NFTs were returned.” "Surprisingly, the hackers started to return stolen “Smol Brains” and other non-fungible tokens (NFTs) hours after the exploit. Other accounts too confirmed this development." "The price of MAGIC tokens recovered by 40% after hackers started to return the NFTs."
"Almost all Hacked NFTs being returned. Your smols and legions will get back to you soon friendss"
This is a global/international case not involving a specific country.
The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.
Include:
- Known history of when and how the service was started.
- What problems does the company or service claim to solve?
- What marketing materials were used by the firm or business?
- Audits performed, and excerpts that may have been included.
- Business registration documents shown (fake or legitimate).
- How were people recruited to participate?
- Public warnings and announcements prior to the event.
Don't Include:
- Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
- Anything that wasn't reasonably knowable at the time of the event.
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The Reality
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What Happened
The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.
| Date | Event | Description |
|---|---|---|
| March 2nd, 2022 5:35:00 PM MST | Main Event | Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here. |
Total Amount Lost
The total amount lost has been estimated at $1,400,000 USD.
How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?
Immediate Reactions
How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?
Ultimate Outcome
What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?
Total Amount Recovered
The total amount recovered has been estimated at $1,400,000 USD.
What funds were recovered? What funds were reimbursed for those affected users?
Ongoing Developments
What parts of this case are still remaining to be concluded?
Individual Prevention Policies
No specific policies for individual prevention have yet been identified in this case.
For the full list of how to protect your funds as an individual, check our Prevention Policies for Individuals guide.
Platform Prevention Policies
Policies for platforms to take to prevent this situation have not yet been selected in this case.
For the full list of how to protect your funds as a financial service, check our Prevention Policies for Platforms guide.
Regulatory Prevention Policies
No specific regulatory policies have yet been identified in this case.
For the full list of regulatory policies that can prevent loss, check our Prevention Policies for Regulators guide.
References
- ↑ SlowMist Hacked - SlowMist Zone (Jun 26, 2021)
- ↑ Treasure (Mar 8, 2022)
- ↑ TreasureDAO: Community WGMI Trailer | The Composable Metaverse - YouTube (Mar 8, 2022)
- ↑ Introduction - Treasure Docs (Mar 8, 2022)
- ↑ Attacker Hacks Arbitrum's Treasure DAO for Over 100 NFTs by Leveraging Marketplace Exploit – Bitcoin News (Mar 8, 2022)
- ↑ @jpatten__ Twitter (Mar 8, 2022)
- ↑ @KeyboardMonkey3 Twitter (Mar 8, 2022)
- ↑ All you need to know about TreasureDAO's exploit, stolen 'Smol Brains' NFTs - AMBCrypto (Mar 8, 2022)
- ↑ @Br0keboy96 Twitter (Mar 8, 2022)
- ↑ @peckshield Twitter (Mar 8, 2022)
- ↑ @stratosnft Twitter (Mar 8, 2022)
- ↑ Address 0x4642d9d9a434134cb005222ea1422e1820508d7b | Arbiscan (Mar 8, 2022)
- ↑ @edgar_eth Twitter (Mar 8, 2022)
- ↑ https://dappradar.com/blog/treasauredao-marketplace-suffers-exploit-153-nfts-stolen (Mar 8, 2022)
- ↑ https://www.one37pm.com/nft/gaming/what-is-the-treasuredao-and-why-is-magic-so-important (Mar 8, 2022)
- ↑ https://www.fiahub.com/en/blog/treasuredao-hacks/ (Mar 8, 2022)