Justin Kan, a co-founder of Twitch and the guy Justin.TV was named after, last week decided to have a website called Fractal. to start, which would be a “marketplace” where in-game items could be bought and sold as NFTs. A link later popped up on Fractal’s Discord server announcing a drop of 3333 NFTs. You might have guessed what happened next.
As a Twitch reporter, Zach Bussey has detailed, the message that seemed real since it came from inside the house had actually been posted by someone who got into Fractal’s Discord bot and pointed to Fractai, not Fractal. The scammers managed to “sell” 3294 NFTs before the plug was pulled. Of course, no real NFTs were sold, they just stole money – over $ 150,000 – though you wonder what the difference is.
In response, the Fractal team issued a statement acknowledging the violation, along with a promise to “get this right”.
Dear fractal community,
This morning about 373 of our community members were the victims of a scam posted on our Discord. We’re sorry. We are going to get this right.
The hacker made out with ~ 800 Sol (~ 150,000 $) by managing to post a fake Mint link on our # announcement channel. With over 100,000 members in our community, it’s pretty impressive that the hacker only managed to defraud 0.3% of our community.
I’m not sure this is the right time to congratulate yourself, but go ahead. Fractal says they “plan to fully compensate these 373 victims” before adding the extraordinary warning: “We must use our best judgment as there is no undo button in crypto”. the whole post Read like a textbook example to show why this is such a shitty place.
In the meantime, Kan posted a short video statement of his own, along with warnings that this Discord scam was also being perpetrated on other NFT communities:
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