Web3 Gaming CEO Twitter Hacked Crypto and NFT Stolen

Gabriel Leydon of Limit Break alleges that an AT&T employee facilitated the attack.

Crypto is the victim of so many social media scams as of late. The web3 space is victim to a myriad of scams and assaults as accounts are hijacked and new exploits are found daily. The latest example of this happened during this week with dozens of NFTs and $30,000 worth of crypto stolen via a scam shared through the account of a well-known Web3 game developer.

The Web3 game developer in question is Gabriel Leydon of Limit Break, a blockchain-based gaming company with a number of successful titles including the anime-inspired DigiDaigaku. The games have been popular among the crypto community and have helped to bring awareness to the young but growing industry.

Limit Break was founded in 2021 by Leydon and Halber Nakagawa. They were both previously co-founders of Machine Zone which is a gaming company responsible for titles like War:Fire Age and Mobile Strike. Limit Break raised $200 million in August from companies such as FTX, Coinbase Ventures and Paradigm.

Sadly, this week the company’s CEO, Gabriel Leydon, had his Twitter account hacked and used to share a crypto scam with his followers. The scam promised access to an allowlist to secure a mint for a free DigiDaigaku NFT. Once users interacted with the website and approved the transaction of the smart contract an attacker stole NFTs and crypto from their wallets. There are no ways to reverse transactions made on the blockchain.

The attacker was able to steal dozens of NFTs from users with a potential net worth of tens of thousands of dollars in ETH. One of the most valuable items was a Mutant Ape Yacht Club NFT which was immediately sold by the attacker for $19,000 at the time. The wallet appears to have taken a total of $30,000 in crypto as well.

Leydon has since regained control of his account and has taken to Twitter to warn his followers about the incident. He also alleges that the hack was facilitated by an AT&T employee who  “did [an] override on all of my security protections and performed [an] unauthorized SIM swap.” according to Leydon.

A sim swap attack is a type of account hijacking where an attacker is able to convince a phone company to give them control of a victim’s phone number. This allows the attacker to bypass any two-factor authentication (2FA) that is in place as well as reset passwords on other accounts that are linked to the phone number.

AT&T has yet to comment on the incident.

ZachXBT , a well-known blockchain investigator tweeted that the attack appears to be linked to Monkey Drainer, one scammer that has a history of large attacks including stealing millions of dollars worth of NFTs and crypto.

This attack is a sobering reminder of the importance of good security practices as well as the need for more user education when it comes to crypto scams. If you are holding any crypto be sure to use a hardware wallet and never give your private keys to anyone, no matter how trustworthy they may seem.

While the industry is still young, it is growing at an alarming rate and scams like this are becoming more and more common. It is important to be vigilant when using any crypto-related service and to always double-check that you are sending your funds to the correct address.

There has been a debate over whether web3 creators should compensate those of their community that fall victim to these types of scams but that debate is ongoing as some feel it is not their responsibility if a person is not careful enough with their own funds. Twitter has since closed in on accounts that cause such problems but it remains to be seen if accounts like that may return under the new Elon Musk run company.

Limit Break claims to have paid $6.5 million for a commercial slot during next years Super Bowl LVII as they hope to expose a wider audience to web3.

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