NFT Projects Lost $22M To Most Discord Hackers

Two Web3 security firms have issued reports of NFT project assaults against NFT projects. This might be because a gang of hackers participating used a hacked Discord admin account.

According to a recent analysis by TRM Labs, cyberattacks against NFT collections have steadily increased in 2022, costing the NFT community more than $22 million in May alone. NFTs are blockchain-based notice that represents ownership of a digital asset or a physical asset.

In the report, TRM Labs – specializing in digital asset compliance and risk management – said that cyberattacks related to NFT minting scams were deployed through compromised Discord accounts. Crime then increased by 55% in June 2022 from the previous month.

TRM Labs said it has received over 100 reports of Discord channel hacking via its Chainabuse reporting tool in the last two months. According to Monika Laird, TRM Labs investigator, the assaults occur every week and primarily target ERC-721 tokens, a non-fungible token standard on the Ethereum network.

According to her, the association between joint fusion sites (exchanges, mixers) and wallets shows that most of these assaults are carried out by the same actors.

Yuga Labs, the company behind the NFT status symbol Bored Apes Yacht Club, said on Twitter last week:

According to TRM Labs, on-chain evidence indicates that several Discord hacks are tied to the same hacker that targeted the Bored Ape Yacht Club in June. According to the business, other targeted initiatives include Bubbleworld, Parallel, Lacoste, Tasties, Anata, and others.

Since May, there have been more than 150 compromises directed at the administrator position in a more extensive NFT project channel, according to Laird. Once hackers have gained control of the admin account, they email links to “exclusive” NFT money and promotional prizes, which induce consumers to visit these fraudulent websites by generating a false feeling of urgency.

While hacks on Discord have proven successful, Laird said that hackers have recently accessed Twitter and Instagram accounts.

According to TRM Labs, the rate at which the attacks are occurring, as well as the fact that they occur across multiple blockchains, suggests that they could be separate attacks by rival cyber criminals running scams concurrently using tools provided as “Scam-as-a-Service,” turn-key, pay-as-you-go services to launch attacks.

While TRM Labs did not specify where the attacks are, blockchain security firm Halborn sees the threat from within China. Alpcan Onaran, Halborn offensive security engineer, said:

“Our analysis indicates that this attack came from a Chinese group that aims for high-value individuals. We are expecting a logarithmic increase in advanced persistent attack (APT) activity and also expect to see different adversaries targeting Web 3.0 companies and individuals.”

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