Magic Eden scare puts 3,832 NFTs in whitehat protective custody

A single wallet transferred 3,832 non-fungible tokens from hundreds of individual wallets on Friday, an action that an NFT community member using the handle Cirrus flagged on X. The transactions appeared as sales through Magic Eden, and Cirrus advised holders to revoke permissions linked to the contract as a precaution.

Shortly after the activity was highlighted, Yuga Labs’ pseudonymous vice president of blockchain, 0xQuit, said the transfers were carried out as a white-hat operation. 0xQuit stated the receiving wallet is holding the NFTs for protection and that the assets will be returned when they are no longer at risk. The Yuga Labs executive has been involved in prior asset-recovery efforts, including a June incident where 68 NFTs were recovered after an exploit affecting Flooring Protocol.

Magic Eden posted on X that the exploit involved Limit Break’s Payment Processor V2, which it stopped using in October 2024. The company said it closed its EVM marketplace in the first quarter of 2026 and asserted that no live Magic Eden listings were impacted by the exploit. However, NFTs listed on its EVM marketplace between roughly February and October 2024 could be affected.

As an immediate mitigation, Magic Eden urged former users to revoke contract approvals on Ethereum, Polygon and Base, noting that revoking approvals will not return tokens already moved. The marketplace said it is contacting Limit Break, the protocol’s owner and maintainer, about additional mitigations, including possible efforts to pause transfers. Cointelegraph reached out to Magic Eden for comment but had not received a response by publication.