Hong Kong Monkey Kingdom’s NFT Project Loses $ 1.3 Million in Phishing Hack, Launches Compensation Fund
Non-fungible token (NFT) project Solana Monkey Kingdom, which received notable backing from US DJ Steve Aoki, announced via Twitter on Tuesday that hackers have recovered $ 1.3 million from the community’s crypto funds through a security breach on Discord.
According to its developers, the hack first happened with the breach of Grape, a popular solution to verify users on Solana. The hackers then used the exploit to gain control of an administrative account, which posted a phishing link in the Monkey Kingdom Discord announcement channel. Users who followed the link logged in their wallets expecting to receive an NFT, but were emptied of their SOL tokens by the scammer.
Announcement on the discord hack pic.twitter.com/1r7svjlZcB
– Monkey Kingdom (@MonkeyKingdom_) December 21, 2021
Tragically, the hack took place as users lined up for the second drop in the project. The Monkey Kingdom consists of 2,222 algorithm-generated NFTs centered around Sun Wukong, otherwise known as “The Monkey King” in Chinese folklore. All proceeds from the initial NFT sale were to be donated to charity of choice, with the goal of supporting Asian communities around the world. It is one of the most successful NFT projects to have seen the light of day in Asia.
Guys I emptied myself 650 $ SOL.
This is one of my biggest mistakes.
I always recommend to people who use the burner, but I was nervous and opted for the Monkey Kingdom Mint. I never would have thought that was not a legitimate link in the official discord.
It is important money for my family: my wife, my son. pic.twitter.com/rtWbCu81Ga
– commstar (@commenstar) December 21, 2021
Related: Compromised Beeple’s Discord, Scheduled To Coincide With Christie’s Auction
A Twitter user, who goes by the name “commstar”, claims to have lost 650 SOL, worth about $ 120,400, due to the scam. But all was not lost. Monkey Kingdom staff have set aside a victim compensation fund and are on track to fully reimburse those affected. The timing and process for distributing the funds has not yet been disclosed.
Phishing attacks are not new to the crypto industry. Over the past year, crooks have repeatedly targeted Discord users and exploited the platform itself to orchestrate such NFT hacks.
Monkey Kingdom community, we support you! We have started processing claims and will be contacting people from today. Thank you for your patience! Once you have received your compensation, please share the news with the community. For the Kingdom !! pic.twitter.com/TVbuSqdKtq
– Monkey Kingdom (@MonkeyKingdom_) 22 December 2021