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ARTICLE · 26 APRIL 2022

Smart Contracts, Human Errors: Software Bugs Cost Aku NFT Project A Jaw-Dropping $34M

Frankfurt Kurnit Klein & Selz PC
Frankfurt Kurnit Klein & Selz PC
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Frankfurt Kurnit Klein & Selz PC

Frankfurt Kurnit Klein & Selz PC

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For background information on the Aku NFT project, please see "Aku, the first NFT optioned for the big screen, offers a glimpse into the future of IP and entertainment"

United StatesTechnology

For background information on the Aku NFT project, please see "Aku, the first NFT optioned for the big screen, offers a glimpse into the future of IP and entertainment" 

"Web3, we have a problem."  On April 22, the highly anticipated Akutar NFT drop, the latest collection in the famed Aku series by pioneer NFT artist Micah Drew Johnson, ended in catastrophe as the founders discovered that logic programmed into their  smart contract resulted in 11,539.5 ETH-over thirty four million dollars-being locked inside the smart contract forever.

What's a smart contract?

A smart contract is computer code deployed onto a blockchain -- here, the Ethereum blockchain network. Like a vending machine, smart contracts are designed to be self-executing, meaning they operate without human intervention.  Smart contracts are the key technology behind non-fungible token (NFT) projects, enabling the minting (i.e., creation), auction, sale, purchase, transfer, and recordation of

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This post first appeared in Frankfurt Kurnit's Focus on the Data blog (www.focusonthedata.com). It provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

Originally published by the New York Legal Ethics Reporter

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

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