Animoca promises compensation for 265 stolen ETH in fake NFT drop Discord hack

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Animoca Brands, the famous gaming and venture capital company, and its subsidiary Blowfish Studios have announced that they will repay its customers the 265 stolen ETH ($1.1 million) in a fraudulent NFT sale on Discord. The scam minting event happened on November 19 at around 3 a.m. AEDT on the Phantom Galaxies server on Discord with around 94,000 members. Within three hours, it saw 1,571 fake minting transactions.

Hong Kong-based company’s subsidiary Blowfish Studios has developed and is bringing the Phantom Galaxies, an Australian game.

Hackers took control of Animoca’s public Phantom Galaxies server using a malware bot that breached the two-factor authentication of the Admin account, which is becoming extremely common on Discord. After gaining control of the Discord server, the hackers disabled all accounts belonging to staff, advisors, and community moderators.

Animoca

Source: PhantomGalaxies Discord server

Animoca co-founder promises the compensation

The hackers then started making announcements, stating that the game was launching a “stealth” NFT minting event right now. Users were redirected to a phony “Phantom Galaxies NFT minting platform,” which asked users a 0.1 ETH “minting fee.” In a tweet sent about 4 a.m. AEDT on November 19, Yat Siu, the co-founder of Animoca Brands, warned investors about the fake NFT drop.

At 5:22 a.m., he tweeted again, saying that individuals who were impacted would be “appropriately compensated.” 

Before this, as TheCoinRise reported, many companies are taking precautionary measures, including FC Barcelona terminating its deal with Ownix and Manchester City suspending its recent partnership due to scams and criminal activities in the crypto world.

The compensation was reaffirmed in a November 24 release from Animoca, which promised that compensation specifics would be announced soon.

Siu is considered one of the biggest supporters of NFT and its capability to preserve culture

RiskIQ study shows that Discord is becoming very popular among cybercriminals with uncovered 27 unique malware hosted on CDN servers.

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