OpenSea bug led to $100,000 worth of NFT burned, including historic ENS domain
OpenSea bug led to $100,000 worth of NFT burned, including historic ENS domain OpenSea bug led to $100,000 worth of NFT burned, including historic ENS domain

Popular NFT trading platform, OpenSea, experienced an error that resulted in non-convertible tokens (NFTs) worth more than $100,000 going up in smoke. The historic ENS domain was also burned.

Burning on OpenSea

An error that occurred on OpenSea led to the destruction of at least 42 NFTs. The tokens were burned by being directed to a burn address from which they could never be recovered again.

The bug was caught by Nick Johnson, one of the developers of Ethereum Name Services (ENS). Nick noticed that during the transfer of an ENS domain, which functions as NFT, it was redirected to an address equivalent to burn. As we mentioned above, this meant that the token landed on an address that no one controls and from which it will no longer be possible to get it out.

For the record, let’s recall that ENS is a service that allows users to associate an address in the blockchain with a domain name. This solution was introduced to facilitate the transfer of funds between users by displaying addresses in a more human-readable form (instead of long alphanumeric strings).

Going back to the burning of ENS, Johnson reported that the first domain of its type ever registered was burned. Eg the name was rilxxlir.eth. Johnson registered it using his own funds, which were in his ENS account. On OpenSea, he wanted to move the ENS name so that it was in his own account. That is when it was sent to the burn address.

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The tweet published by Nick Johnson reads:

[…] it turns out that I was the first and apparently only victim of a bug that occurred on their transfer site in the last 24 hours that affected all ERC721 transfers to ENSnames. Ownership of rilxxlir.eth is now permanently burned.”

Not just ENS

As Johnson remains the controller of the ENS name, he can still modify it – in terms of block addresses

chain that the ENS name is associated with. He is simply unable to transfer the name itself.

Shortly after this incident, Johnson received information from others who were also supposed to have suffered a loss as a result of the error on OpenSea. He compiled a list of over 30 erroneous transactions involving 42 NFT transactions. Most of the NFTs were based on the ERC-721 standard, but a few used ERC-1155. He checked the minimum prices of each of the NFTs, and when added up, the losses came out to be in the neighborhood of $100,000.

Here’s a list of the types and series of tokens that got burned:

Johnson claims that OpenSea has already eliminated the bug, although – at the time of this writing – there is no official position on the matter from the platform itself…

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