Former Securities and Exchange Commission (SEC) counsel John Reed Stark has deemed the recent hacking attack on the NFT Trader platform an epic tragedy and urged investors to steer clear of any non-fungible token (NFT) collections. Stark referenced the theft of NFTs from collections such as Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), NFT World of Women, VeeFriends, and Art Blocks. Investor losses amount to millions of dollars. While the hacker has returned BAYC and MAYC tokens for 120 ethers, Stark believes that rewarding the criminal only encourages unlawful activities.
“I would have never guessed that JPEG files featuring silly-looking cartoon monkeys could be so easily intercepted. This is a tragedy of epic proportions. Call the protagonists of action series Jack Reacher and Jack Bauer. Summon comedian Jack Black; he could make a film about this destructive adventure,” remarked the former official with sarcasm.
John Reed Stark believes that such attacks are too prevalent in the NFT ecosystem, stating that this market is “completely compromised.” Market manipulations with NFTs are becoming increasingly widespread and tacitly approved, according to Stark. Therefore, the expert advises staying away from purchases of collectible tokens, labeling NFTs as fraudulent.
The former SEC veteran had previously asserted that “bored apes” in funny glasses and bright hats cannot be considered reliable investments. Stark holds a negative stance on USDT as well, as there is still no legal framework in the U.S. properly regulating the activities of companies issuing stablecoins.
