- Animoca Brands to cover the users’ losses that happened during Phantom Galaxies discord server hack.
- Refunds worth 265 ETH will be issued after discussions with the game’s community.
- Animoca and Blowfish apologized following the discord hack incident.
Venture capital firm Animoca Brands announced it will compensate users for damages incurred from Phantom Galaxies’ discord server hack that happened on Nov. 19.
According to the update, Animoca will refund users with 265 ETH ($1.1M) that got stolen after the hackers posted a fake NFT mining announcement in Phantom Galaxies game’s official discord server.
The process for repaying users for their stolen ETH will be decided after discussions with the Phantom Galaxies community.
It may consist of making payments to users to repay the amounts taken by the hackers or delivery of equal value.
The hackers led some of the servers’ 94,000 members to a website that charged users a 0.1 ETH fee and transmitted the funds worth 265 ETH to the hackers’ Ethereum address.
Over the span of three hours, 1,571 fake NFT minting transactions occurred.
Hackers took control of the official Phantom Galaxies server by compromising the Admin account’s two-factor authentication with a malware bot.
After gaining control of the Discord server, the hackers disabled all accounts belonging to advisors, staff, and moderators.
There is no proof that smart contracts were breached, and no funds were stolen from the game or its creator and publisher, according to Animoca.
Yat Siu, co-founder of Animoca, and Animoca Brands continued to tweet about the problem to make sure that as many users as possible were aware of the issue until Blowfish management could take necessary steps.
Blowfish, an Australian-based subsidiary of Animoca, who is in charge of developing the Phantom Galaxies game, has apologized for the incident along with Animoca.
This is not the first time discord servers are getting compromised as recently something similar happened to NFT artist Beeple. Beeple’s official discord server got hacked just before his second auction on Nifty where the hackers posted a fake NFT drop and scammed the users.