Magic Eden points to a protocol case that expired two years ago.

Magic Eden, what's going on?

Magic Eden stated that the incident was related to the Limit Break trading protocol and smart contracts which were discontinued two years ago, not a direct attack on the company's platform. Jack, co-founder and CEO of Magic Eden posted on X on 25th that "Today Magic Eden has not been hacked", explaining that the platform ceased using said protocol two years earlier and is now in negotiations with Limit Break as well as additional guidelines.

Why is this important?

In the digital asset industry, users often need to connect their wallets with different platforms or protocols in order for a business operating system to replace them. Smart contracts are programs that run on blockchains and potentially tie certain rights to user's wallet addresses. Even after the protocol has been discontinued, any permissions or privileges once granted will still be something the user should check because they could be channels through which assets can be moved if not managed properly.[1]

For this event, Magic Eden pointed out that the involvement of Limit Break and smart contracts expiring two years ago was not a direct attack on platforms, but the fact that companies had to deal with Limit Breaks and push for temporary asset transfer suspension measures at the protocol level indicates that there are still technical and practical dimensions to be clarified.

A temporary suspension of asset movement at the protocol level may mean suspending transfers or transactions associated with a system in order to limit damages while providers and related protocols are reviewing the situation. If this measure is pushed at a protocol level, the impact could not only be on the user's screen or account but also involve the operation of smart contracts and residing on blockchains.[1]

How does it affect users?

Users who connect a wallet to Magic Eden or have previously done business with the associated protocol should closely follow official announcements from Magic Eden and Limit Break. Withdrawal of rights or revocation of permissions once granted to smart contracts are basic steps that help mitigate risk. If users have digital assets linked to the location of their wallets, they should only check for privileges related to the Magic Eden according to official guidelines and should not proceed based on unverified transmissions.

The average user should check which smart contracts their wallet allows to work on its behalf, and should only use commands or tools that link from Magic Eden's announcement or Limit Break because clicking links or following falsified instructions could open up additional rights for the bad guys.

In the context of users in Thailand, those who connect their wallets to local platforms such as Bitkub or a service that accepts value-transfer in baht (THB) should exercise extra caution because movement of digital assets can involve multiple channels ranging from wallets, app connections and trading platforms. Users in Myanmar relying on cross-border digital asset marketplaces should also monitor the status of their wallet and associated rights, and should follow up with notifications from the Ministry of Finance or relevant regulatory authorities in Thailand when there is an informal dissemination of information.

A safety lesson.

This incident shows that the termination of protocols is not just about shutting down service providers, but also dealing with distributed rights in a blockchain system. Users should therefore consider security as an ongoing task: monitoring wallet addresses, restricting permissions, tracking announcements from platforms and periodically reviewing privileges previously granted to various protocols.

For Magic Eden, the key message was that the company stated it had not been directly attacked but the incident related to a Limit Break and Smart Contract shutdown two years ago. While Jack continued communicating through X on 25th for guidance to users, and thanks to hacker White, users should hold official announcements as primary information in managing rights associated with Magic Eden and shouldn't interpret temporary measures as confirming each user's overall security status until further confirmation.