• ‘Kia Sedona’ NFT sales fail, contractor accused of running off with $3 million

  • One token sale exchangeable for “Kia Sedona” NFT raised $3.1 million.

    A contractor for the token sale platform Miso disappeared with all the money.

    There are all sorts of frauds, scams and pimping going on in the fast-growing market for non-fungible tokens, or NFTs. But this one is quite special.

    For starters, the NFT sale itself is strange. The whole idea was based on a recent cryptocurrency Twitter meme about Kia Sedona-branded cars (the joke being that the Kia Sedona is a hard currency). A group of 10 anonymous people behind the sale created a jazzy website and named it “Jay Pegs Auto Mart.” (It has nothing to do with the automaker).

    The sale is for DONA reservation tokens. These can be purchased on Miso, the token sale platform of the decentralized exchange SushiSwap. Each DONA token purchased in the sale can be exchanged for a 2007 Kia Sedona NFT – potentially 10,000 of them.

    The token sale went well. It raised 864.8 Ether (ETH), worth $3.1 million. But what the anonymous team of shady supercoders (another meme) didn’t expect when it chose to use Miso was to have all its money whisked away.

    According to SushiSwap CTO Joseph Delong, an anonymous contractor inserted malicious code into the Miso platform that changed the destination address of all incoming funds from the token sale to their own.Delong said the Jay Pegs Auto Mart sale was the only one affected, and all funds raised were stolen.

    Delong added that SushiSwap has asked cryptocurrency exchanges Binance and FTX to identify the hackers – by providing their KYC information – but they have not done so. He said the platform has instructed Stephen Palley, a partner at law firm Anderson Kill, to file a complaint with the FBI if the funds are not returned by 8 a.m. EST.

    On the bright side, Jay Pegs Auto Mart’s Twitter account assured buyers that – despite the fact that it hadn’t raised any money – it would still release the Kia Sedona NFT.

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