Misidentified Suspect in Bored Ape NFT Theft Raises Concerns Among Crypto Community
May 12
2 min read
Law enforcement has mistakenly detained the wrong individual in connection with the theft of Bored Ape NFTs, according to prominent crypto investigator ZachXBT. The incident, which occurred in December 2022, involved the theft of 14 NFTs valued at over $1 million. ZachXBT's findings suggest that the real perpetrator remains at large, raising questions about the investigative process in the crypto space.
Key Takeaways
Law enforcement detained Sam Curry, a former security researcher at Yuga Labs, as a suspect in the Bored Ape NFT theft.
ZachXBT claims that stronger leads exist pointing to the actual attacker.
The theft involved 14 Bored Ape NFTs, which were valued at approximately $86,000 each at the time.
The investigation's reliance on flawed data led to the wrongful detention of Curry.
Background of the Theft
In December 2022, an anonymous hacker executed a sophisticated scam that resulted in the theft of 14 Bored Ape Yacht Club NFTs. At the time, these NFTs were trading for around $86,000 each, totaling over $1 million in losses for the victims. The Bored Ape Yacht Club is one of the most prestigious NFT collections, boasting a market capitalization exceeding $300 million.
The Wrongful Detention
ZachXBT, known for his expertise in tracing crypto transactions, revealed that law enforcement mistakenly linked Sam Curry to the theft based on an IP address found in OpenSea logs. Curry had been investigating the theft as part of his role at Yuga Labs, the company behind the Bored Ape collection. ZachXBT criticized the investigation, stating:
It’s unfortunate to see how a security researcher was detained when stronger leads on a threat actor potentially responsible exist.
Curry's involvement in the case was misinterpreted, as he had been using a private key that the hacker had embedded in the website's JavaScript to conduct his investigation.
The Investigation Process
ZachXBT employed forensic tracing techniques to identify the actual suspect behind the theft. His methods included:
Reconstructing the flow of funds through Tornado, an Ethereum mixer, to track the stolen assets.
Analyzing on-chain transactions associated with the suspect's wallet to gather evidence.
Recommending law enforcement to investigate the suspect's social media accounts for further leads.
Implications for the Crypto Community
This incident highlights significant concerns regarding the investigative processes used in the crypto space. The reliance on potentially flawed data can lead to wrongful accusations and detentions, undermining trust in law enforcement's ability to handle cybercrime effectively. As the NFT market continues to grow, the need for accurate and thorough investigations becomes increasingly critical.
Conclusion
The misidentification of Sam Curry as a suspect in the Bored Ape NFT theft serves as a cautionary tale for both law enforcement and the crypto community. As the landscape of digital assets evolves, so too must the methods used to investigate crimes within it. The community looks to ZachXBT's findings as a call for more rigorous investigative practices to ensure that justice is served and that the true perpetrators are held accountable.
Sources
Crypto sleuth probes attacker behind Bored Ape heist, Cointelegraph.