Ozzy Osbourne recently dipped his toe in the NFT game. However, the move has accidentally cost some followers thousands of dollars.
According to The Verge, Osbourne’s CryptoBatz NFTs (which was made up of 9,666 digital bat images/animations) had announced a link to a Discord server for fans to log into to access the NFTs. However, the link to the CryptoBatz Discord server was altered, which led to some being scammed out of thousands.
The Verge reported, “When the project switched to the new URL, scammers set up a fake Discord server at the old one. But neither CryptoBatz nor Ozzy Osbourne took the precaution of deleting tweets referencing the previous URL, meaning that old tweets from Osbourne himself were left directing followers to a server now controlled by scammers…Inside the server, a bot spoofing community management service Collab Land asked users to verify their crypto assets to participate in the server — but directed users to a phishing site where they were prompted to connect their cryptocurrency wallets.”
One person duped by this effort was Tim Silman, who was quoted by The Verge as losing between $300-400, but they said, “…Others lost a lot more than me.”
Per The Verge, “An Ethereum wallet address Silman indicated was linked to the scammers had received a series of incoming transactions totaling 14.6 ETH ($40,895) on January 20th and sent it onwards to a wallet containing more than $150,000.”
Of course, many are trying to figure out who’s really to blame for this event, but CryptoBatz developer Sutter Systems are collectively pointing their fingers at Discord. In a statement to The Verge, Sutter Systems co-founder “Jepeggi” said, “Although we feel very sorry for the people that have fallen prey to these scams, we cannot take responsibility for the actions of scammers exploiting Discord — a platform that we have absolutely no control over. In our opinion, this situation and hundreds of others that have taken place across other projects in the NFT space could have easily been prevented if Discord just had a better response/support/fraud team in place to help big projects like ours.”
Discord Senior Manager Peter Day would respond with, “Our Trust & Safety team is in touch with the server owners and are investigating the incident. Our team takes action when we become aware of attacks like this one, including banning users and shutting down servers.”
So, what did we learn today? With NFTs or any other potential investment, always proceed with caution.