If the crash of Terra network wasn’t enough, many platforms within the cryptocurrency sector have ended up getting preyed on by a phishing attack. It is to be noted that whenever a project or a protocol is exploited, people start doubting its own management.
This forces the investors and the users of the affected platform to doubt its own developers or executives. A major instance of such occurrence is Terra network. Initially, the crash of the terraUSD and LUNA was attributed to the malfunctioning the algorithm backing the stablecoin.
Now, the case has taken a turn as the very own CEO of Terraform Labs is wanted by the South Korean Police Authorities. He has been accused of planting the whole drama and started planning for it in late April of 2022.
To sum it all up, people will start doubting any protocol or platform within the cryptocurrency universe that faces such issues or is preyed on. Such cases result in pulling the prices of the cryptocurrencies lower that is operated through the networks.
Discord Servers Lead to a Catastrophe
The latest reports have revealed that the servers for Discord have been compromised. The compromised servers include Axie Infinity, cryptocurrency projects, and multiple collections of large non-fungible tokens (NFTs).
The sources have revealed that the attackers have reportedly started publishing links on these servers. The investigation has shown these are phishing links. These have been forged into looking like the links for NFT mints.
Several other projects have been attacked by cybercriminals. These projects include other NFT collections such as PROOF and Moonbirds. Then there is PeckShield, a blockchain security firm, CyberConnect, a social graph protocol. Other projects include Memeland, a payment network, and RTFKT, a virtual sneakers company.
Axie Infinity Team has confirmed the Attack
The investigation team at Axie confirmed that the main Axie server’s MEE6 bot had been compromised. The attackers hacked the particular bot. Later, they made a fake account for Axie, adding several permissions to it. Once done, the account was used to make an announcement about a fake NFT mint. The account that the attackers composed was named after Axie’s co-founder, JihoZirlin.
Other projects also confirmed that it was the MEE6 bot by Discord used for the phishing attack.
Impact on Axie Infinity
At the moment, Axie Infinity’s trading price is worth a low of $20.55 and a 2.37% downward drag is the reason. It is being speculated that the recent phishing attack is the reason behind Axie’s loss in value. Axie has experience the dip while other major cryptocurrencies are experiencing upward movements.
If it weren’t for the recent phishing attack, Axie Infinity’s price could have been at $23.69 or more. Going forward, as the NFT plus the overall crypto sector recovers, Axie Infinity may also move into the upward direction.