In a notable case involving the theft of Bored Ape non-fungible tokens (NFTs), law enforcement agencies have been criticized for detaining the wrong suspect. As highlighted by cybersecurity researcher ZachXBT, an error in judgment resulted in the apprehension of Sam Curry, a former security researcher for Yuga Labs, the company behind the Bored Ape Yacht Club NFT collection.
In a post on May 9, ZachXBT revealed that he had traced the wallet responsible for stealing over $1 million worth of NFTs back to a now-deleted X account. Despite this, the investigation led to the mistaken detention of Curry, who was wrongfully linked to the crime due to an erroneous review of data logs by law enforcement.
“It’s unfortunate to see how a security researcher was detained when stronger leads on a threat actor potentially responsible exist,” ZachXBT commented, emphasizing the need for more diligent investigative practices in the rapidly evolving world of cryptocurrency and NFTs.
The incident, which took place in December 2022, involved the theft of 14 Bored Ape Yacht Club NFTs, each valued around $86,000 at the time. ZachXBT illustrated that law enforcement mistakenly linked Curry as a suspect through incorrect IP address data, not realizing that Curry was investigating the theft as part of his duties.
ZachXBT utilized forensic tracing techniques, including analyzing on-chain transactions and fund flows through Ethereum mixers like Tornado, to uncover evidence pointing to a different individual as a likely perpetrator. He pressed for law enforcement to acquire data related to that suspect’s social media accounts while further examining their on-chain transactions.
Since its launch in 2021, the Bored Ape Yacht Club has established itself as one of the most valuable NFT collections globally, boasting a market capitalization surpassing $300 million. However, the value of individual Bored Ape NFTs has dipped significantly, trading for around $30,000 each as of May 9, reflecting the volatile nature of the NFT marketplace.
This case serves as a stark reminder of the complexities involved in securing digital assets and the importance of thorough investigations in the realm of cryptocurrency fraud. It underscores the need for proficient knowledge and expertise in digital investigations to avoid further missteps in the future.
