On March 17, Yuga Labs airdropped ApeCoin to Bored Ape NFT holders. It is safe to say that this opened up a new opportunity for opportunists who wanted to get some Ape Coin.
Someone found a way to claim this airdrop without owning any Bored Apes. This is because the airdrop was carried out in a way that enabled this individual to run off with $1.1 million in ApeCoin. The ApeCoin airdrop was given to all Bored Ape NFT holders, irrespective of when they minted their NFTs. Therefore, if a Bored Ape owner gifted their Ape to someone else and hadn’t yet claimed their tokens, the giftee could claim the tokens instead.
How the ApeCoin fraud occurred
The fraudster found a vault that contained Bored Ape NFTs, whose corresponding ApeCoin hadn’t been claimed. It so happened that the vault contained five lucrative Bored Apes, worth around 500 ETH or $1.4 million.
To carry out their plan, the fraudster used a flash loan. Flash loans are a way to borrow large sums of crypto at a low-interest rate. They are given out on the basis that they are repaid in one, instant transaction.
The fraudster bought a Bored Ape NFT on OpenSea for under $300,000, which they used as collateral for the loan. Then, they used the flash loan to purchase the vault’s token; which in turn, let them redeem the vault’s five NFTs. The fraudster used these NFTs to claim the ApeCoin airdrop, before returning the vault’s NFTs. The tokens were then sold back at a higher price, and the loan was repaid.
Through this complex plan, the fraudster managed to claim 60,564 ApeCoin. They then sold the ApeCoin off for 399 ETH or $1.1 million. After doing that, they also sold off the Bored Ape NFT that they had bought for collateral purposes.
This is not the first fraud that occurred after ApeCoin’s launch. In fact, scammers quickly set up a phishing site that lured people to a link that eventually stole their NFTs and ETH.
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