We have just processed refunds to wallets affected by the Degentown wallet drain incident from July 2022.

How we built the list of wallets to be refunded:

  1. Magic Eden found four main scammer wallets based on publicly available information as well as our own investigation.

  2. Hello Moon created a list of wallets that had, with a high degree of probability, been drained by these four main scammer wallets from July 9, 2022 and up to 4 weeks hence. For each wallet, Hello Moon included:

    1. SOL amounts

    2. NFTs

    3. SPL tokens

  3. From this list we excluded:

    1. Wallets that appear to have never held DegenTown or The Resurrected.

    2. Suspicious wallets, e.g., those that share an IP address with or received funds/tokens from the four main scammer wallets

    3. Escrows and exchange wallets

  4. We then ended up with a final list to be refunded, at least for this first phase of refunds. Should any more affected wallets surface, then we’ll kick off another round of investigations and process another set of refunds accordingly.

How we calculated the refund amount:

  1. SOL - the exact amount drained by the scammer wallets

  2. NFT - average selling price (or floor price, if no relevant sales) of the collection 24hrs prior to the drain

  3. SPL tokens - the value of the SPL converted in SOL at the block time of the transfer


Why did it take so long?

The web of transactions was more complex than your average hack according to fraud experts. The scammer transferred multiple items multiple times using different wallets and appeared to have used decoy wallets as well. We were careful to avoid refunding the scammer himself while also making sure we refund as many affected wallets as possible.

Why did you exclude wallets that appear to have never held Degentown or The Resurrected NFTs?

According to our best understanding, the hack was done through a staking website, whereby a holder would have had to connect their wallet and attempt to stake their NFTs by approving a transaction. If this is true, then there wouldn’t have been a need for non-holders to connect their wallet or approve a transaction. We are, however, still investigating this specific scenario, and are open to discuss this more with relevant users.

Why did you use the average selling price in calculating the refund amount for each NFT?

We used the average selling price to account for some of the stolen NFTs being commons (i.e., could have been sold at or close to the floor) and some being rares (i.e., could have been sold at much higher prices). We unfortunately don’t have capacity to calculate individual items according to every possible rarity ranking system, but we believe average price is a fair way of compensating for the value lost.

What was your source of info in calculating the refund amount for NFTs and SPLs?

Hello Moon used their own data to calculate average selling price for NFTs and the conversion to SOL for SPL tokens.

Were you able to include all the drained wallets? Are your calculations perfect?

Probably not. We consider this Phase 1 of the refund, and based on our investigation we believe most of the drained wallets have already been included. However, data sets as large as this are prone to errors, we may have not located all the wallets affected by the drain, and some of the refunds themselves may have encountered transaction errors. This is why it’s important for us that affected users can easily ask for a review.

How can I find out if my wallet is included in Phase 1?

Click on the purple chat widget at the bottom. Start a message with us, click on the ‘DegenTown refund’ option and follow the instructions.

My wallet was not included but I was scammed, too! How can I ask for a review?

Same as the above! The chat bot will ask for your wallet details and the transaction ID of the drain. As soon as we get enough information to conduct another round of investigations, then we’ll kick off Phase 2 of the refund. We’re not sure how long this will take, but we’ll keep updating the community with our progress.

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