Sunday December 04, 2022

Ozzy Osbourne’s NFT Project shared a link that was a scam, and his followers lost thousands of Dollars

You can be sure that the NFT collection will be announced by a well-known pop-cultural icon such as Ozzy Osbourne. The “CryptoBatz”, a collection of 9,666 digital bats was announced in Billboard, Rolling Stone and Hypebeast. However, just two days later, supporters were targeted by a phishing scheme that depletes cryptocurrency from their wallets. This scam was based on a link posted by the project’s official Twitter account.
As with most NFT projects, CryptoBatz uses Discord to organize its community. The official CryptoBatz Discord is now accessed through the short link discord.gg/cryptobatz. But previously, the project used a slightly different vanity URL at discord.gg/cryptobatznft.
Scammers created a fake Discord server at an old URL when the project switched to the new URL. Ozzy Osbourne and CryptoBatz did not delete tweets that referred to the old URL. This meant that Osbourne’s tweets were still directing his followers to a server controlled by scammers.
One tweet from CryptoBatz was posted on December 31st 2021 and received more than 4,000 replies and hundreds of retweets. After being contacted by The Verge, CryptoBatz removed the tweet on January 21st.
Clicking the link to the scam revealed that the invite panel for Discord had shown the total number members as 1,330. This indicates the potential number of people who could have been fooled.
A bot spoofing community management system Collab Land asked users for verification of their crypto assets in order to participate in the server. However, the bot directed them to a phishing website where they were prompted connect their cryptocurrency wallets.
Collab Land representatives declined to comment.
One victim of the scam was Tim Silman, a non-profit employee. Silman estimates that he lost between $300-400 in Ethereum after visiting the fake Discord server via a link on the CryptoBatz website.
Silman said that he’d seen at least 12 people on Twitter voice the same concern. “If you look at Etherscan transactions, you will see that others lost a lot less than I.”
Silman claimed that an Ethereum wallet address was linked to the scammers. He received a series incoming transactions totaling 14.6ETH ($40,895) January 20th. The transaction was sent onwards to a wallet with more than $150,000.
Silman stated that the project was slow to eliminate the bad links even after being informed.
He said, “I tagged them several times in different tweets, as have some other people, but no reply.” “This is an expensive lesson, I think.”
The fake link was still prominently displayed in a tweet by CryptoBatz, but the project continued to promote the public token mint. On January 21st, CryptoBatz NFTs could be resold on OpenSea at a price of 1.8ETH ($5,046).
When asked if the project should take responsibility for the link being removed online, Sutter Systems (developers of the CryptoBatz NFT) said that the scam was directly at the feet of Discord. “Jepeggi,” a co-founder of Sutter Systems, stated in an email to The Verge that the compromise was possible only because of the simple setup and maintenance of the scam Discord instance.
Jepeggi stated that while we are sorry for those who fell prey to these scams we cannot accept responsibility for the actions taken by scammers using Discord — a platform we have 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 stated that it was aware and in contact with the affected teams.
Peter Day, senior manager of corporate communications at Discord, stated that “our Trust & Safety team has been in touch with the owners of the server and are investigating the incident.” “Our team responds to attacks like this by banning users and shutting off servers.

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