Fake NFT Drop on Discord: Gaming Company to Repay Buyers $1.1 Million in Crypto

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Fake NFT Drop on Discord: Gaming Company to Repay Buyers $1.1 Million in Crypto

A recent Discord breach resulted in a fake NFT drop, which defrauded customers of (dollar)1.1 million in Ethereum cryptocurrency. Animoca, the owner of the “Phantom Galaxies” hacked Discord, has promised to pay them back.

Drop of a Fake NFT on Discord

According to Currency.com, the “Phantom Galaxies” game’s Discord server was hacked, resulting in a phony NFT drop.

The hackers were able to take more than a million dollars worth of Ethereum, or ETH 265, in their NFT drop.

Furthermore, the hackers took over the game’s Discord server for about three hours, resulting in 1,571 false NFT transactions.

“More Phantom Galaxies have been put in stock!” reads one of the hoax announcement’s screenshots.

The con artists also push users of the “Phantom Galaxies” services to mint NFTs in order to receive ambiguous benefits such as “exclusive items.”

Furthermore, the phony NFT minting demanded that customers pay ETH0.1, which is equal to over (dollar)4,000.

The money, however, was not used to create anything by the con artists. Instead, the funds were quickly transferred to the criminal brains’ Ethereum wallet addresses.

Discord Server Hack for ‘Phantom Galaxy’

The online game “Phantom Galaxies” was created by Blowfish Studios, a part of the Hong Kong-based gaming company Animoca Brands.

The said game’s community, which has around 94,000 users, uses Discord servers to connect with other players of the said online game.

Animoca to Repay Scam Victims

According to CoinTelegraph, Animoca Brands, a venture capital firm, and its subsidiary, Blowfish Studios, have promised to compensate all victims of the recent scam.

Shortly after the Discord attack, Animoca Brands Chairman Yat Siu wrote on his Twitter account that his company would compensate all of the server’s impacted consumers.

In a press announcement issued on November 24, Animoca acknowledged that it is doing so, stating that the compensation details will be published later.

Also read: After raising (dollar)20 million from Bill Ackman, Paris Hilton’s (dollar)300 million NFT company will begin improving service.

NFT Drops That Aren’t Real

It’s not the first time a fake NFT has appeared after a hacking attack. Even the well-known NFT artists known as Beeple were involved in the attack.

Users were then duped into purchasing low-cost bogus NFTs that claimed to be from the well-known musician. News from Brinkwire in a nutshell.

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