A reported SIM swap attack on the popular Gutter Cat Gang NFT project resulted in the theft of over $765,000 worth of nonfungible tokens (NFTs). The breach was initially brought to light by concerned members of the NFT community at approximately 8 pm UTC on July 7. Co-founder of Gutter Cat Gang, @GutterMitch, took to Twitter to issue a warning, stating that their Twitter account had been compromised and advising users not to interact with any links shared from the account. Another co-founder, @gutterric, also fell victim to the hack.
The perpetrators of the attack utilized the compromised accounts to share links to fake “limited edition” Gutter Cat Gang NFT sneaker airdrops. Unsuspecting individuals who clicked on these fraudulent links found their hot wallets drained of funds. In an attempt to lend credibility to the scam, the tweets featured recent Gutter Cat Gang branding and imagery from the project’s successful collaboration with Puma and NBA/Charlotte Hornets player LaMelo Ball for a phygital sneaker drop.
Prominent blockchain investigator ZachXBT joined the conversation, suggesting that the Gutter Cat Gang team had likely been targeted through a SIM swap attack. He criticized their cybersecurity practices and urged the team to consider compensating the victims, as using SMS 2FA (two-factor authentication) on social media accounts after recent SIM swap incidents demonstrated negligence. ZachXBT further revealed two victims of the attack—one losing a Bored Ape Yacht Club NFT valued at $65,913 and the other suffering losses of approximately $700,000 across several renowned NFT collections.
Gutter Cat Gang hack
Gutter Cat Gang co-founder @gutterdan_ provided an update on the situation, confirming that they were collaborating with Twitter to regain control of the compromised accounts. Expressing empathy towards those affected, he assured them that the matter was being treated with utmost seriousness. The team also pledged their commitment to working with law enforcement agencies to investigate the hack and security breach. At the time of publication, it appears that the compromised accounts have not yet been recovered.
Launched in mid-2021, Gutter Cat Gang quickly gained popularity for its collection of 3000 unique NFT cartoon cat avatars. The project’s floor price currently stands at 0.5 Ether, which represents a significant increase of approximately 615% from the initial minting cost, according to NFT Price Floor.
The incident serves as a stark reminder of the persistent security risks faced by individuals and projects within the NFT space. The increasing value and popularity of NFTs have made them an attractive target for hackers seeking to exploit vulnerabilities in security measures. It underscores the need for robust cybersecurity practices, including strong authentication methods and continuous monitoring, to safeguard the assets and interests of NFT creators and collectors alike.
