Crypto investors who bought 40 acres of land in Wyoming in hopes of "building a city on the Ethereum blockchain" lost more than $92,000 to a Discord hack. Some clever social engineering and questionable security measures on Discord's part allowed scammers to gain control of a CityDAO Discord moderator's account, then send out fake announcements about a fake "land drop". The scammer received over 29.67 ETH (about $92,000).
Animoca Brands' subsidiary Lympo, an NFT platform specifically for sports, experienced a breach of several hot wallets. This allowed an attacker to pull 165.2 LMT tokens from the platform, equivalent to about $18.7 million. The tokens were quickly exchanged for Ether on Uniswap and Sushiswap. The hack caused the value of LMT to drop by 92%, to $0.0093.
The Rich Dwarves Tribe was an NFT project announced in December 2021, which minted in January 2022. The project had been heavily promoted by musicians including NeYo, Jason Derulo, BowWow, and Fred Durst. It promised a metaverse "tavern", giveaways, a crypto project incubator, and NFTs that would "mine coins for you". However, shortly after the project minted out, its creators disappeared with the funds and abandoned the project.
An hour after releasing their ice cream-themed NFTs, developers of the Frosties NFT project closed their social media accounts and disappeared with $1.1 million, plunging the token value to nearly zero.
Doodled Dragons takes at least $30,000 after tweeting "our charity will instead now be... my bank account"
A SolSea-verified NFT project on the Solana blockchain, Doodled Dragons, touted that they would distribute all profits "straight to charities protecting animals on the brink of extinction". They announced on Twitter that they would be donating $30,000, "our first donation", to the World Wildlife Fund. Two hours later, they tweeted, "actually. fuck that. our charity will instead now be... my bank account. cya nerds." They deleted the Twitter account shortly after.
The Liechtenstein-based cryptocurrency exchange LCX suffered a $6.8 million loss when one of its hot wallets was compromised. Assets including ETH, USDC, EURe, and LCX were moved to an Ethereum wallet belonging to the attacker, then quickly tumbled using the Tornado Cash mixing service.
Gary V announces his new "NFT restaurant" where you'll still have to pay regular money for your meals
Gary Vaynerchuk announced plans for his New York City "NFT restaurant", Flyfish Club. The cheapest NFT, giving access to only parts of the restaurant, was listed at 2.5 ETH (at the time around $8,000); a full-access membership was listed at 4.25 ETH (around $14,400). However, the NFT only grants access to the restaurant. Patrons will still pay for their food and drink — and in real money, not crypto.
An investor filed a class action lawsuit against Kim Kardashian, Floyd Mayweather, and Paul Pierce, all of whom promoted the EthereumMax currency (not to be confused with the completely unrelated Ethereum project). The lawsuit also names the creators of the coin, who are still unknown, but who the filer hopes to unmask through legal discovery. The filer alleges that the group of defendants were hyping a "pump-and-dump scam" that caused him to suffer investment losses.
Users of Hong Kong crypto exchange Coinsuper reportedly haven't been able to withdraw funds for several months
Users reported not being able to withdraw currency from their accounts with Coinsuper, a Hong Kong-based crypto exchange. Although trading has remained active on the platform to date, some users have said they have spent months trying to withdraw their funds, to no avail. A group have filed a complaint to the police. Communication from Coinsuper has been practically nonexistent, both to users and to their investors.
SEC sues CrowdMachine founder, alleges illegal ICO and operation that secretly diverted funds to gold mining companies
The SEC alleged that Craig Sproule, founder of companies CrowdMachine and Metavine, ran a fraudulent and unregistered ICO when he launched "Crowd Machine Compute Tokens" (CMCTs). Although he claimed that the money raised from the token sale would be used on technical development of the "Crowd Computer", a "global decentralized" peer-to-peer network, he made no effort to create this technology. Instead, he secretly sent more than $5.8 million of the more than $33 million raised in the ICO to South African gold mining companies.