Crypto investor used borrowed funds to get into the list of the most expensive non-fungible tokens from Larva Labs
The owner of NFT # 9998 from the CryptoPunks collection put the token up for sale for a record $ 124.4 ETH ($ 532 million at the time of sale) and used the borrowed funds to buy it from himself. After the transaction, the crypto investor repaid the loan.
Punk 9998 bought for 124,457.07 ETH ($532,414,877.01 USD) by 0x9b5a5c from 0x8e3983. https://t.co/dmT6jDRC1W #cryptopunks #ethereum pic.twitter.com/UQlmm1oqkj
— CryptoPunks Bot (@cryptopunksbot) October 28, 2021
Thus, the owner of the CryptoPunk # 9998 token got into the top of the most expensive NFTs from the Larva Labs studio. The purchase fee was 0.19 ETH (about $ 800).
Later, representatives of the Larva Labs studio admitted that, in fact, the transaction was illegal, since the investor acquired the NFT from himself.
PSA: This transaction (and a number of others) are not a bug or an exploit, they are being done with “Flash Loans” (https://t.co/Q5bDL1QkWP). In a nutshell, someone bought this punk from themself with borrowed money and repaid the loan in the same transaction. 1/2 https://t.co/EgS7aiga3j
— Larva Labs (@larvalabs) October 29, 2021
The studio removed the deal from the list of the most expensive NFTs, and also promised to add filtering of such operations so that they do not appear in the top in the future.
At the moment, the most expensive NFT from the CryptoPunks collection is # 7523 (“Alien”). It was sold by auction house Sotheby’s in June for $ 11.8 million.
CryptoPunks is a collection of 10,000 digital avatars in the form of humans, monkeys, aliens and other creatures, created in the form of NFT.
