Mistaken Detention in Bored Ape NFT Scam Raises Concerns

According to Cointelegraph, law enforcement mistakenly detained Sam Curry, a former Yuga Labs security researcher, in connection with a 2022 scam involving the theft of over $1 million worth of Bored Ape non-fungible tokens (NFTs). Cybersecurity researcher ZachXBT revealed this error in a May 9 post on X, stating that he had identified the wallet behind the scam and linked it to an X account that has since been deleted. The incident highlights the challenges faced by authorities in accurately identifying suspects in complex cybercrime cases. In December 2022, an anonymous attacker stole 14 Bored Ape Yacht Club NFTs, which were valued at approximately $86,000 each at the time, according to CoinSlam data. ZachXBT explained that law enforcement mistakenly reviewed logs from OpenSea, which included Curry's home IP address, leading to his incorrect identification as a suspect. Curry, in reality, had been investigating the theft as part of his security work at Yuga Labs, using a private key embedded in the website's JavaScript by the threat actor. ZachXBT employed forensic tracing techniques, including reconstructing the flow of funds through Tornado, an Ethereum mixer, to identify a likely suspect in the 2022 theft. He urged law enforcement to request all data related to the individual's social media accounts and examine on-chain transactions associated with their alleged wallet. The Bored Ape Yacht Club, launched in 2021, remains one of the most valuable NFT collections, with a market capitalization exceeding $300 million, according to CoinGecko. As of May 9, Bored Ape NFTs are trading for around $30,000 each on OpenSea, with prices varying based on unique characteristics.