Hackers and scammers continue to target the crypto and non-fungible token projects with increasingly sophisticated attacks. In yet another incident, hackers have attacked the non-fungible token project, TokenWorks, and swapped non-fungible token collections from its non-fungible token perpetual machine, SquiggleStrategy. In this article, we shall about the NFT attack in detail.
Here’s my detailed analysis—does this mean the project is deliberately turning a blind eye, or is it a well-planned scam?https://t.co/Ar2ckFEF05
— 0xSyncroot (@0xsyncroot) September 28, 2025
Hackers Swap NFTs From SquiggleStrategy
In a September 28 blog post, TokenWorks NFT team confirmed that unknown scammers have exploited the Squiggle NFT Strategy contract and swapped a non-fungible token collection to make a cheap gain. After analyzing further, the security team has found that the exploiter was able to swap Squiggles NFT held by the strategy for other lower-value NFTs on the same contract “Day One AB: Genesis by DCA and Construction Token by Jeff Davis.” The NFT firm further explained:
“Sadly, as a result of this exploit, we believe we have found a bug in the 8 currently deployed NFTStrategies (PunkStrategy is NOT affected). This hasn’t been exploited yet, and it wouldn’t be profitable for the exploiter, but we believe it is better to get ahead of it before the DoS attack is performed, while the strategies are just getting started.”
TokenWorks exploit has stirred a heated debate on X, with many collectors sharing their opinions about possible causes of the attack. Commenting about this attack, Punks Fanatics said that “I think the issue is solely with Squiggles, due to the Art Block contract. This happened before on OS.” The TokenWorks security team has confirmed that it will test and fix these potential attack vectors before launching more strategies.
TokenWorks Overview
TokenWorks is the digital asset company behind the non-fungible token strategy, an automated on-chain investment protocol taking the non-fungible token community by storm. TokenWorks launched its NFT strategy earlier this month. It started with PunkStrategy, an automated on-chain investment protocol that uses transaction fees from its utility token “$PNKSTR” to acquire high-value CryptoPunks. The NFT protocol operated as a “perpetual punk machine” and blended the decentralized finance (DeFi) and NFTs.
The NFT strategy draws fees from trades and uses them to buy NFT collections, and relists them at 1.2x. After the NFT collection sells, all of the ETH is used to buy and burn that NFTStrategy token. This continues forever. Right now, the NFTStrategy has a 10% trading fee, with 8% going to the NFT accumulation pool, 1% to TokenWorks supporters, and 1% to the TokenWorks NFT team.
Last week, TokenWorks NFT team added more NFT strategies, including the $APESTR, for the Bored Ape Yacht Club, $PUDGYSTR, for the Pudgy Penguins, $DICKSTR, for Dickbutts and $BIRBSTR, for the NFT collection, Moonbirds. Earlier this week, TokenWorks NFT team added Milady Makers, Goblintown, Good Vibes Club, and Squiggles and CryptToadz NFT strategies.
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