A 22-year-old cybercriminal has been sentenced to one year in prison following convictions related to stealing nearly $800,000 worth of NFTs and cryptocurrency through a series of deceptive social media raffle scams.
The individual hijacked verified X accounts belonging to prominent digital artists and brands. Using these compromised accounts, they posted fraudulent links promoting non-existent NFT raffles designed to trick followers.
Victims who engaged with the links were prompted to authorize malicious wallet transactions. These actions allowed cybercriminal to drain their assets directly, bypassing legitimate platforms. Over 200 individuals were defrauded within days during 2022, resulting in combined losses of $794,000 in NFTs and cryptocurrency.
This exploit leveraged the inherent trust placed in verified social media accounts by followers, spotlighting persistent security vulnerabilities within the digital asset space, particularly affecting the NFT market.
The defendant has a documented history of cryptocurrency theft, including involvement in a prior high-profile $40 million SIM-swapping attack. This sentencing occurred shortly after their release from previous incarceration.
The case underscores the critical need for enhanced security protocols to combat social media account hijacking and prevent NFT-related fraudulent schemes targeting cryptocurrency holders.