A savvy trader has admitted to bagging $1.5 million worth of Ethereum after outsmarting a bot on non-fungible token (NFT) marketplace Blur.
Pseudonymous trader Hanwe Chang said that he noticed someone using a bot to copy all of his trades on Blur, and formulated a plan to take advantage.
As explained by pseudonymous trader A-Raving-Ape.eth on X, Hanwe appears to have accumulated NFTs from popular artist Azuki. He then placed extremely inflated bids on all of them from a separate wallet, attempting to lure the bot.
Once the bot blindly copied his bids, Hanwe then sold all of his Azukis at needlessly high prices to the bot. While the top bids for all the NFTs were previously under five ETH, Hanwe managed to sell them to the bot for 50 ETH each.
Much of the profits appear to have been moved to an Ethereum address labeled as Hanwe.eth, according to blockchain scanner Etherscan.
Gabriel Shapiro, general counsel at Web3 development firm Delphi Labs, said that the owner of the bot, who has the X handle @ThinkingETH, may have a chance at legal recourse.
“I unironically think @ThinkingETH might have good legal claims to get their ETH back from the bot ‘trick’ if they hire a skilled litigator. Legally the issues are a bit more nuanced than they might be normatively from the standpoint of cryptotwitter.”
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