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Twitch co-founder's new NFT platform hit with NFT scam through Discord hack

Community duped for $150,000.

Twitch co-founder Justin Kan last week launched a new platform to sell NFTs, but its Discord server was hacked and hit by an NFT-selling scam.

Fractal is Kan's new venture, essentially a marketplace for selling in-game items and cosmetics as NFTs on the blockchain.

A hacker managed to gain access to the Fractal Discord server posing as a bot with a link advertising a drop of NFTs to be sold. The scammers managed to sell 3,294 NFTs before it was shut down, according to reporter Zach Bussey.

Of course, no NFTs were being sold. Instead, the NFT-selling platform was scammed for around $150,000.

Fractal issued a statement in response.

"Earlier today, approximately 373 of our community members fell victim to a scam posted on our Discord. We are sorry. We are going to make this right," it reads.

"The hacker made out with ~800 sol (~$150,000) by managing to post a fake mint link in our #announcements channel. With over 100,000 members in our community, it's quite impressive that the hacker only managed to dupe .3% of our community."

Yes that's Fractal boasting about how only a small percentage of its community were ironically duped.

The statement explains that those scammed will be refunded, before warning that "we must all be careful out there".

"If something doesn't feel right in crypto, please don't proceed, even if at first it looks legitimate," reads the statement. "We must use our best judgement as there's no "undo button" in crypto."

Kan himself issued a video statement on Twitter, apologising to those affected and warning us to "trust your instincts if something seems fishy".

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Ed Nightingale avatar

Ed Nightingale

Deputy News Editor

Ed has an interest in streaming, people and communities, and giving a voice to marginalised people.

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