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On October 09, a CrypToadz non-fungible token collection sold for over $1.6 million on the OpenSea NFT marketplace platform, increasing trading sales volume across the entire NFT marketplace by 85% in just a few hours. The surprise sale has raised concerns of scams linked to money laundering behind the sold NFT collections.
Source: CryptoSlam.io, NFT sales in the last 24 hours
CrypToadz #4030 NFT sold for over $1.6M
Data from the OpenSea NFT marketplace has confirmed that CrypToadz #4030 was purchased for 1,055 WETH or more than $1.6 million at current crypto prices. The buyer also paid a service fee for approximately $42,000 worth of Ether. In this article, we will find out whether it was a normal sale or clear money laundering:
The purchasing wallet was funded by a wallet that is withdrawing money from Tornado Cash pic.twitter.com/aInHO8vNyG
– TexasHedge (@0xTexasHedge) 9 October 2023
Launched in September 2021, CrypToadz is a non-fungible token collectible consisting of a limited set of 6,969 tiny amphibious creatures who are trying to escape the tyrannical rule of the evil King Gramplin. The NFT collection was created by digital artist Gramplin. Its minimum value is 0.5 ETH.
The sale of CrypToadz has attracted red flags, given that the deal occurred while the general crypto market is experiencing a brutal downturn. The downturn in the NFT market began in the middle of this year, leaving most non-fungible tokens with more than 80% of their value intact.
The concerning NFT collection became speculative, given that its lowest price was only 0.53 ETH or about $835, with a best offer of around 0.6 ETH. In simple terms, buyers of the NFT collection paid unusually above the market rate for this profile picture (PFP) project, leading to massive speculation.
Initially, many On several occasions, NFT sellers have accepted bids that are well below the market price for a particular collectible.
NFT sales were also estimated to be a top-ranking form of wash trading. According to the description, wash trading is a form of market manipulation in which an entity or NFT collector simultaneously sells and buys the same NFT, creating a false impression of market activity without taking on market risk or changing the entity’s market position. .
Spies Connect Cryptodz NFT Buyer to Tornado Cash
Fortunately, after a thorough investigation, on-chain investigators and industry experts have linked the surprise NFT buyer to Tornado Cash. Founded sometime in 2019, Tornado Cash is an automated service that lets crypto users obfuscate the flow of crypto out of wallets by combining different users’ funds into one pool.
Tornado Cash breaks up the public, on-chain flow of cryptocurrencies between wallets, making it more difficult to trace how ETH is being sent. Privacy advocates say the platform lets users conduct crypto transactions with less fear of surveillance, but authorities have described it and similar tools as a way to launder money. Scammers and hackers have adopted this platform to avoid being traced.
The investigation found that the wallet that purchased the CrypToadz NFT collection was recently funded with approximately 1,116 ETH, or approximately $1.7 million, from another wallet, which received 1,200 ETH, or approximately $1.9 million. The funds were initially from Tornado Cash, making it difficult to trace the original source of these funds.
Meanwhile, Gramplin, the brain behind the Cryptodz NFT collection, has distanced himself from the controversy surrounding his NFT collection, and urged his supporters not to spoil the good vibes of the NFT collection amid recent scam concerns. . CrypToadz NFT sales have increased global NFT trading sales volume by 85% in the last 24 hours.
If you’re going to wash down your whirlwind ath please don’t spoil the good vibes of a fresh toad in the process, thanks pic.twitter.com/jDqqD9sWTr
– 🎃 (@gremplin) 10 October 2023
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