Fake NFT Drop on Discord: Gaming Firm to Repay Buyers $1.1M Worth of Crypto

Fake NFT drop on a Discord hack has recently scammed buyers to the tune of $1.1 million worth of Ethereum cryptocurrency. Now, the owner of hacked Discord of "Phantom Galaxies," Animoca, vows to repay them.

Fake NFT Drop on Discord

As per the news story by Currency.com, the Discord server of the game "Phantom Galaxies" was hacked, leading to a fake NFT drop.

The NFT drop of the hackers was able to pocket more than a million worth of Ethereum, or to be more precise, a total of ETH 265.

What's more, there were precisely 1,571 fake NFT transactions as the hackers took over the Discord server of the game for nearly three hours.

One of the screenshots of the scam announcement reads: "More Phantom Galaxies have been put in stock!"

The fraudsters further encourage the people on the "Phantom Galaxies" services to mint the NFTs in order to get vague bonuses from them, such as "exclusive stuff."

On top of that, the faking minting of NFTs also asked its buyers to pay for ETH0.1, which is equal to over $4,000.

However, the scammers did not use the money to mint anything. Instead, the payment was promptly transferred to the Ethereum wallet addresses of the criminal minds.

'Phantom Galaxy' Discord Server Hack

The subsidiary of the Hong Kong-based gaming firm, Animoca Brands, Blowfish Studios, developed the online game that goes by the name "Phantom Galaxies."

The community of the said game is using Discord servers to gather other players of the said online game with about 94,000 members in total.

Animoca to Repay Victims of Scam

According to the report by CoinTelegraph, the venture capital company, Animoca Brands, along with its subsidiary, Blowfish Studios, vows to repay all of the victims of the recent scam.

Shortly after the Discord hack occurred, the Chairman of Animoca Brands, Yat Siu, tweeted on his Twitter account that his firm would be compensating all of the affected customers on the server.

Animoca confirmed that it is doing so in a press release on Nov. 24, noting that the compensation details will be announced.

Fake NFT Drops

It is actually not the first fake NFT drop after a hacking incident. In fact, even the popular NFT artists known as Beeple figured in the same attack.

Users were then scammed into buying affordable fake NFTs that pretended to be from the famed artist himself.

Meanwhile, another fake NFT drop pretending to be from another sought-after artist, Bansky, sold for a whopping $270,000. However, hackers returned the stolen money anyway.

This article is owned by Tech Times

Written by Teejay Boris