A link to the NFT auction was posted this morning on Banksy’s official website. The NFT quickly sold for $336K, but was it a scam and was Banksy hacked?
The earthis morning a new page appeared on the official website of the artist Banksy. It displayed an image similar in style to CryptoPunks, a collection of popular non-fungible tokens (NFTs). Cryptopunks and other NFTs have seen their value rise over the past months, and any NFT issued by Banksy would likely be highly valued.
The image was titled – “The Great Redistribution of Climate Change Disaster”.
The “NFT” page on Banksy’s website before it was taken down.
Image linked to a page on OpenSea, the NFT market— where an NFT with the same image is listed for auction. Several bids were soon made, the highest being 100 ETH ($336,000).
However, around 11:00 GMT, the page was removed from the Banksy website. Around the same time, the seller ended the OpenSea auction early, and the NFT was sold to the highest bidder at the time, for $336,000.
This sequence of events has led some to speculate that the NFT was not actually created by Banksy, and that his website may have been hacked to promote the fake NFT.
The winning bidder, a professional NFT investor known as “Pranksy”, themselves speculated that it was a scam:
So my offer of 100 ETH is accepted for potential #Banksy first #NFT he @opensea.
The link has been removed from his website so it could have been a very elaborate scam, I guess that’s what it will be, only time will tell!https://t.co/EEmElqIvBZ pic.twitter.com/Pbs5zrht05
— Pranksy 📦 (@pranksy) August 31, 2021
Subsequently, Banksy’s agency denied any involvement in NFTs, further supporting the belief that the creation and sale of NFTs was a fraud:
Banksy’s agency Pest Control tells me the artist “has not created any NFT artwork”.
“No Banksy NFT auction is associated with the artist in any way.” https://t.co/nRkqgtKadO
— Ryan Browne (@Ryan_Browne_) August 31, 2021
NFT was originally created using funds from Ethereum account which was active for a little over eight months. It has previously transacted with a major exchange, a gambling service, DEX, and Tornado Cash, a commingling service used to prevent asset tracing.
**UPDATE** The NFT seller has now refunded the buyer:
My ETH from #Banksy #NFT purchase just returned to me, ethical hacker proves right?https://t.co/idDNEsEIhK
— Pranksy 📦 (@pranksy) August 31, 2021
This mirrors the recent Poly Network hack, where more than $600 million in crypto assets were stolen, only to be returned by the hacker within hours.
It remains unclear whether this episode is the work of a hacker, or perhaps a pre-planned artwork by Banksy himself.
NFTs crypto crime