The creators of the NFT collection Bored Ape Yacht Club issued ApeCoin tokens, 15% of which were distributed to NFT holders. One of the users took out an instant loan, bought an NFT and received $1.1 million worth of ApeCoin.
According to The Block, the scheme was quite simple. BAYC developers did not check the NFT tenure when giving away tokens. Therefore, the user could buy NFT, participate in the distribution of ApeCoin and immediately sell his token. And so it happened – an unknown user bought five BAYC tokens, received $1.1 million worth of ApeCoin and immediately sold the NFT.
Bored Ape Yacht Club and Mutant Ape Yacht Club NFT holders were each given 10,094 ApeCoins. Their value ranges from $80,000 to $200,000. The distribution of tokens was carried out not on the basis of a snapshot, but on the wallets of NFT owners. Therefore, one of the users was able to take an instant loan, buy BAYC #7594, #8214, #9915, #8167 and #4755 tokens worth about 500 ETH ($1.4 million), receive $1.1 million worth of ApeCoin and sell NFTs.
All of this was done in one single “instant loan” transaction. At the same time, to secure an instant loan, the user bought an NFT from the BAYC collection for $300,000. After that, he took an instant loan, bought NFT and received 60,564 ApeCoin. He sold these tokens on the Uniswap exchange for 399 ETH, which at the exchange rate at the time of the sale amounted to $1.1 million.
Previously, an attack using instant loans was used by hackers who hacked a DeFi project called Deus Finance. They managed to steal assets worth $3 million.
Source: Bits
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