Founder of crypto investment firm DeFiance Capital, Arthur Cheong, has fallen victim to a hot wallet attack, losing over $1.6 million in NFTs and crypto.

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At 12:30 am UTC, the hacker gained access to one of Cheong’s Ethereum wallets and quickly transferred his NFTs, including 17 Azuki, 5 CloneX, 2 Hedgies, and 33 Second Self to their wallet, before listing them on OpenSea.

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In addition to the NFTs, Cheong unfortunately also lost 68 wrapped Ether (wETH), 4,349 staked DYDX (stkDYDX), and 1,578 LooksRare (LOOKS) tokens. At the time of writing, the hacker’s wallet holds 588 ETH, worth around $1.7M.

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Cheong shared on Twitter that the hacker compromised his wallet using a method known as spear phishing, allowing them to copy his seed phrase. “Found out the likely root cause for the exploit, it's a targeted social engineering attack. Received a spear-phishing email that really seems to be sent by one of our portco with content that seems like general industry-relevant content”.
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