Animoca Brands to Cover $1.1M NFT Scam Losses
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25 November
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Animoca Brands, an investment firm focused on decentralized gaming and non-fungible tokens (NFTs), has announced it will cover users' losses following the hack of the Phantom Galaxies Discord. According to an announcement, the company will cover 265 ETH worth about $1.1 million.

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Discord server of Phantom Galaxies, an upcoming game by the Animoca Brands subsidiary Blowfish Studios, has been hacked in the early hours of 19 November 2021. Animoca Brands says "unknown hackers" gained access to the official Discord account of Phantom Galaxies, which amounts to approximately 94,000 members.

The company believes that the hack was carried out with a malware bot that compromised the two-factor authentication for the Admin account of the Discord server of Phantom Galaxies. Once in control of the Discord server, the hackers banned all staff accounts as well as all accounts of advisors and community moderators.

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Later, the hackers began to post fraudulent announcements, advertising an immediate "surprise NFT minting event," the company says. As a result, the hackers stole about 265 ETH from Discord users via 1,571 fake minting transactions over the course of about three hours. Animoca Brands claims there is no evidence that smart contracts were compromised, and no funds were stolen from the game or from its developer and publisher.

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