Animoca Brands to Cover Losses From ‘Phantom Galaxies’ Discord Hack

Hong Kong-based gaming software and venture capital firm Animoca Brands said it will cover users’ losses that occurred because of a Nov. 19 hack of the Discord server for its upcoming “Phantom Galaxies” game.

Animoca Brands said it will cover the loss of 265 ETH, worth about $1.1 million, from the hack involving a game called “Phantom Galaxies” that is being developed by its Australia-based subsidiary, Blowfish Studios.Animoca noted there was no evidence that smart contracts were compromised, and no funds were stolen from the game or from its developer or publisher.According to the firm, last week hackers managed to access the Discord account of Phantom Galaxies and take over its server. The hackers then posted a fraudulent announcement claiming that the game was launching a non-fungible token (NFT) minting event.The hackers directed users to a website charging users a 0.1 ETH fee that sent the funds on to the hackers’ Ethereum address. The total sent was 265 ETH, or roughly, $1.1 million.The company said the method for compensating users for their lost ether will be determined after discussions have been held by the Phantom Galaxies community.Animoca Brands and Blowfish have apologized for the incident.

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