Marvel’s NFT Partner Veve Temporarily Closes Market After Native Token Hack

Veve, a marketplace for non-fungible tokens (NFTs) with permissioned digital collectibles, faced a hack Tuesday that resulted in the illegal acquisition of millions of gems (in-app tokens). The platform is popular with legacy brands like Marvel, Pixar and Coca-Cola, which have chosen Veve as their official launch partner.

In an official tweet on Wednesday, Veve acknowledged the hack on its platform and said the attackers managed to obtain a “large number” of gems illegally. The app-based NFT platform has closed the marketplace along with the option to buy gems until the investigation is complete.

Due to this invasion, we have closed markets, purchases, and gem transfers during our investigation. We will update you as soon as possible with the estimated opening times of the market.

— Veve | Digital Collectibles (@veve_official) March 23, 2022

Gems are VeVe app tokens that users redeem for collectibles during launch or in the marketplace. Early reports suggest that the hackers behind the attack managed to mint millions of gems without paying for them by exploiting vulnerabilities in the buying mechanism. One user wrote that their friend accidentally purchased gems with an expired credit card and the transaction was completed.

As far as I know, a friend told someone that they accidentally bought gems with an expired credit card and the transaction went through. So it looks more like an expired credit card exploit than a stolen credit card. Veve still hasn’t confirmed.

— ⭕ Garlic Shrimp⭕ (@GARLICxSHRIMP) March 22, 2022

The platform also restricted several user accounts that allegedly attempted to buy cheap gems from fraudulent accounts. While the NFT platform did not disclose the exact number of stolen gems, one Twitter user claimed the number could be in the millions and could be the largest theft on the platform. Veve did not respond to Cointelegraph’s request for comment at the time of publication.

Twitter users also shared a timeline of the hack, in which Veve first recorded the highest 3 days of in-app gem token purchases, followed by a halving of the token price, dropping by 0.5 to 0.25, and then the market went into maintenance.

so….

Apparently some 7 million gems were bought fraudulently

Several accounts with which they interacted are now disabled

Veve needs to retrieve these gems, which will be his greatest feat yet.

Users who buy cheap in-app gems may lose money https://t.co/7YG3BBXjMe

— niftyswaps.eth ⭕ (@niftyswaps) March 23, 2022

The theft of gems on Veve also led to a massive drop in the price of NFTs listed on the platform, with one user realizing why the value of NFTs dropped by 80% within a week of Veve’s official Twitter post.

@veve_official I just saw your recent tweet and now I understand why my secret rare Goofy dropped 80% in ATH market value in a matter of weeks, I panicked and eventually sold it. Very unhappy! The first robot, now stealing gems? ? ?

—joker_del_mar (@jai_sond) March 23, 2022

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