NFTs, Crypto Theft After Twitter Hacking Web3 Gaming CEO Gabriel Leydon

the summary

  • Limit Break CEO Gabriel Lydon’s account was hacked on Wednesday and used to post a scam link.
  • The attacker succeeded in stealing NFTs and cryptocurrency from users who interacted with the scam link. Leydon claims that an AT&T employee made a mistake.

Social media fraud thriving in cryptoAnd the NFT Collectors lose their assets in attacks carried out through hijacked accounts. The most recent example happened last night, where dozens of NFTs and about $30K in cryptocurrency were stolen through a scam shared through the account of a known person. web 3 Game developer.

On Wednesday, the Twitter account of Gabriel Lydon—Co-founder and CEO of Limit Break, the gaming startup behind Cartoon Inspiration Ethereum NFT projects, DigiDaigaku– It was apparently taken over by an unauthorized user. The account continued to share a link when it was Described as access to the approval list To secure a coin for a free DigiDaigaku NFT.

Instead, when users interact with the site and agree to the transaction they requested smart contract– This is the code that runs the NFTs and the standalone decentralized applicationsAn attacker instead stole NFTs and cryptocurrencies from both of them governor. A third party cannot undo transactions made on blockchain networks, as a bank or credit card company would do in the event of fraud or theft.

The attacker stole dozens of NFTs from users, potentially worth tens of thousands of dollars in Ethereum in total. By far the most valuable of them was one Mutant Monkey Yacht Club NFT as fast attacker Selling for 12.39 ETH (about $19,100 at the time). Also, the wallet seems to have Took about $30 thousand in cryptocurrency of users.

Leydon has since reinstated his Twitter account and blamed carrier AT&T in an audio message shared via a tweet. In a direct message to DecryptLeydon claimed that an AT&T employee “did it [an] Bypassed all security measures and did it [an] Unauthorized SIM change.

A SIM swap attack is usually used to bypass two-factor authentication protocols on accounts. An attacker could seize the mobile phone number in question and then use it to access protected accounts – including social media, where they could then impersonate the account holder.

Leydon claimed that an employee “bypassed” protections created for his AT&T account, and said Limit Break has been in touch with the company about the allegations. AT&T representatives did not immediately return the calls DecryptComment request.

The CEO of Limit Break said Decrypt That the studio is investigating the attack, and that it will work to help users whose assets were stolen. “It’s a horrific situation, and as soon as we verify that a person has been attacked, we will help that person,” Lydon said.

ZachXBT, an investigator known by a pseudonym in the blockchain, tweeted that the attack appears to be so Associated with Monkey DrainerRecently done hustler They embezzled millions of dollars of NFTs and crypto assets.

Twitter has come under similar attacks in recent months. In some cases, the account of a prominent NFT artist or project maker is hacked and used to spread so-called “wallet drying” scams. The emergence of these scams has led to a debate about the responsibilities of Web3 creators To compensate users who lost their assets as a result.

On other occasions, verified accounts of unaffiliated users – such as journalists – have been hijacked and re-branded as official accounts of the project and Used to spread exploits. It happened quite often earlier this year, especially around projects like azuki And the the other sideHowever, Twitter appears to have patched any vulnerability that facilitated these breaches for verified accounts.

Limit Break was founded in 2021 by Leydon and Halbert Nakagawa, former founders of mobile game studio Machine Zone, which has produced successful titles such as Game of War: Fire Age and Mobile Strike. The Web3 startup raised $200 million, announced in August, from companies such as FTX, Coinbase Ventures and Paradigm.

DigiDaigaku has been described as a “free to own” game that aims to steer clear of demise Play to earn form popularized by Axi Infinity. The original Genesis NFT Profile Pictures (PFP) was launched in August with a free coin and created Over 9000 ETH of trading volume to date, or about $14 million based on the current price of ETH.

Limit Break claims to have purchased Super Bowl LVII’s commercial DigiDaigaku slot in February 2023 Priced at $6.5 millionInvesting heavily in the potential opportunity to showcase the Web3 project to a larger audience.

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