Renowned Crypto Sleuth Unmasks Alleged NFT Fraud Amidst Mystery and Drama

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In a recent development, the alarm bells of potential crypto fraud rang loud and clear. Noted cryptocurrency sleuth, ZachXBT, recently unveiled the convoluted account of a suspected hack which allegedly impacted an NFT project late last month. The Chief Technology Officer (CTO) of the beleaguered project, Nuddies NFT, assured stakeholders that an official response was forthcoming but, in an unexpected twist, suddenly disappeared amidst mounting objections.

ZachXBT, renowned for his adept on-chain investigations, unearthed signs of possible misuse of funds by Nuddies CTO, Kyle. A now-defunct post by Kyle stated that the project was successfully “derugged” from its former founder and was distinctly structured compared to its counterparts in the NFT domain.

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The twists and turns of the unfolding saga pointed to a situation where Kyle had allegedly staged a hack resulting in the loss of the project’s funds. On March 3, Kyle took to the Nuddies NFT Discord server to inform his audience about the supposed hack.

According to Kyle’s narrative, he became a victim of a security breach while not clicking any malicious link. He attributed the attack incident to a “zombie process” that unknowingly invaded his computer. The intruder, allegedly, leveraged this entity to compromise his machine, gain control via the ubiquitous TeamViewer app, and steal crucial data, including 90 SOL tokens (worth around $17,000) from the Nuddies NFT creator’s wallet.

The series of unfortunate events continued, as the purported hacker claimed control over Kyle’s Discord and allegedly stole an additional 150 SOL tokens, approximated around $28,300. A shell-shocked Kyle publicly announced that he was “mentally destroyed” by this loss which chewed up a significant sum reserved in the project’s treasury.

However, the trail of evidence collected by ZachXBT painted a distinct picture. The dedicated crypto detective posited that Kyle lied to the stakeholders and took off with 94 SOL tokens, equal to $12,000 at the time of the incident. As the pieces of the puzzle started falling into place, it appeared that the assets were moved from the Nuddies Royalty Wallet to an external exchange deposit at 8:20 UTC on the same day. An ensuing transaction accounting for 3.42 ETH, or approximately $11,700, was identified leading to Kyle’s wallet at 8:21 UTC.

The amassed ETH was reportedly used to purchase two NFTs: DeGods 2921 and y00t 10991. The DeGod NFT, interestingly enough, was sported as Kyle’s profile image on his social media account until recently.

Reacting to this storm of accusations, Kyle responded on his social media account that he was “preparing the answer,” preceding it with a cheeky wink face emoji. Post the profile picture change, Kyle indulged in some reputation recovery by answering user questions asserting that his “conscience is clean.”

In the ensuing hours, Kyle refilled the creator’s wallet with $12,000 and insisted that his intentions were sincere all along. He also claimed that he was waiting for a significant $W airdrop to fulfill his promise instead of liquidating his DeAsset. Additionally, he transferred the project access keys to two community members and then ceased his involvement in the project altogether.

The plot thickened as both Kyle’s and Nuddies NFT’s accounts were abruptly deleted following the refilling post. An unidentified user reported the Nuddies website as dysfunctional, throwing the project’s future into uncertainty. The unexpected turn of events caught one of the community members off guard, who was completely unaware of the ongoing crisis.

One of the two nominated community members, Juiceddd, an NFT artist who was diligently working on enhancing the Nuddies collection with over 70 new traits, was taken aback upon discovering himself as the new owner of the project. As he grapples with the reality of the situation, he is contemplating giving his side of the story, highlighting how the artist is usually the one who “gets the short end of the stick” in such situations.