Magic Eden Legacy Approvals Exposed $5.7M in NFTs Before Whitehat Rescue

This incident underscores a persistent structural risk in NFT marketplaces: legacy wallet approvals that outlive the trading activity they were granted for. The exposure affected holders who had interacted with Magic Eden under older permission models, a group that likely spans active and dormant users alike. While the whitehat rescue prevented loss this time, it does not resolve the underlying issue of stale approvals remaining live indefinitely. The open question is whether marketplaces will treat approval revocation as an ongoing user-facing priority or continue to rely on after-the-fact rescues.