According to Premint CEO Brenden Mulligan, the NFT platform is also acquiring wallet security firm Vulcan to help prevent future hacks.
A hack at NFT registration platform Premint over the weekend led to over 300 NFTs being stolen from users’ wallets. Today, the company announced that it intends to reimburse the victims.
According to a live broadcast this afternoon, Premint CEO Brenden Mulligan said the company, in collaboration with “a third party, non-Premint employee”, conducted on-chain analysis to compile a list of all NFTs stolen on Sunday.
Every associated crypto wallet on that list will receive Ethereum (ETH) equivalent to the collection floor price of every stolen NFT. Approximately $525,000 will be refunded to defrauded Premint customers, according to Mulligan.
“I realize that the NFTs stolen were not all floor [price] NFTs,” Mulligan said today. “You might feel like this compensation isn’t enough. But I don’t think there’s any other scalable and objective way to do this,” said the Premint CEO.
Most expensive NFT’s returned
Two notable exceptions to that repayment policy are the two most expensive NFTs stolen on Sunday, a Bored Ape the hackers sold for 89 ETH (almost $150,000) and an Azuki they sold for just over 10 ETH (over $15,000). According to Mulligan, Premint bought both NFTs off their new owners at purchase price and returned them to the original owners after the hack. According to Mulligan, these were the most valuable NFTs taken by the hackers.
In his announcement, Mulligan expressed his aversion to reimbursing digital asset hack victims. “I have this feeling, and many others have this feeling, that compensation in this world, when a hack happens, actually has a negative long-term effect,” Mulligan said. “Because it doesn’t teach people a lesson.”
In spite of this, Mulligan considered the event a one-time exception because it occurred within Premint’s own website.
Malicious Code
A malicious JavaScript code was installed on Premint’s website on Sunday, and a pop-up was created to ask users to confirm ownership of their wallets. Upon infiltrating customer wallets, the hackers stole 321 NFTs, and quickly sold most of them for over $400,000.
Mulligan also announced today that Premint has acquired wallet authentication tool Vulcan as part of its long-term commitment to user security.