Doodles NFT Discord Hack
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The Doodles NFT are a collection of 10,000 hand-drawn NFT images made by a Canadian artist with the handle "Burnt Toast". The Discord server of the project was hacked on March 31st/April 1st using an exploit in the webhooks for a ticketing system in common use. Viewers of the Discord were promised a great deal on a limited edition mint, however the site they were taken to would authorize the full withdrawal of any remaining assets in their wallets. It is unknown how much was taken, and doesn't appear any was recovered.
This is a global/international case not involving a specific country.[1][2][3][4][5][6][7][8][9]
About Doodles NFT
"Doodles are a collection of 10,000 NFTs (non-fungible tokens) that are made up of hundreds of exciting visual traits designed by Burnt Toast." "Doodles are a colorful NFT collection of cartoonish figures with unique features and colorful backgrounds. Doodles NFTs were created by Scott Martin (aka Burnt Toast), an established Canadian artist and illustrator. Doodles are made from random combinations of 256 traits. The collection also features 62 hand-drawn Custom Doodles."
"Hand-drawn Doodles include skellys, cats, aliens, apes and mascots. The Doodles collection also includes dozens of rare heads, costumes, and colorways of the artist's palette." "Doodles NFTs are enjoyed for their droll expressions, colorful palettes and the vibrant online community that shares a passion for this project. Doodles are often used as PFPs (profile pictures) on social media platforms."
"The Doodles universe is ever-expanding and new experiences like Space Doodles are only available to collectors. While the universe expands, our brand grows, and collectors can expect exclusive access to the latest products, merchandise and events through ownership."
"Owning a Doodle allows you to vote on community-driven features, products and events. This makes our roadmap collaborative to be decided by the project founders and Doodle holders via the Doodlebank. The Doodlebank is our community treasury which boasts over $5m USD and is used to fund these experiences."
"Lift off has completed, and we are now ready to land! Mint your Doodle Planet Now! Supply 500 Limited amount! Mint 0.05 ETH. Genesis has a limited supply, be quick! Be sure to approve when minting to ensure the transaction goes through!"
"Security breaches and data attacks on crypto firms have seen a drastic rise in the last few months. A couple of days ago, the BAYC team confirmed that their Discord servers were compromised, and the hackers even managed to steal a valuable Mutant ApeYacht Club (MAYC) NFT."
"[T]he Discord of another NFT collection, Doodle, was also attacked." "Both of the phishing sites are very similar. It has to be the same group behind Doodles & BAYC."
"According to Serpent, the Ticket Tool was the real source of the hack."
"The user also stated that according to the inside information received from the hackers, the official Captcha Bot was also hacked and that the source code had been stolen."
"I have received inside information from one of the hackers. THE OFFICIAL CAPTCHA BOT IS HACKED, REMOVE IT FROM YOUR SERVER. BAYC & Doodles have already been hacked within the last 30 minutes but MANY MORE SERVERS WILL BE HACKED."
"This is not 100% confirmed to be the root cause of these hacks but remove it from your servers to stay safe and use a different verification bot."
"I was told that the owner of Captcha Bot (ImDarkDiamond) was compromised and the source code was stolen (This part is 100% confirmed)" "Last I was told, owner of captcha bot was hacked, the source code was stolen and they were going to extort him. The bot doesn't seem compromised currently but I would still stay far away from it. REAL source of the hack is 100% confirmed to be Ticket Tool." "Security researchers said a ticketing tool that checks users and sends out notifications across the channel has been compromised."
This is a global/international case not involving a specific country.
The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.
Include:
- Known history of when and how the service was started.
- What problems does the company or service claim to solve?
- What marketing materials were used by the firm or business?
- Audits performed, and excerpts that may have been included.
- Business registration documents shown (fake or legitimate).
- How were people recruited to participate?
- Public warnings and announcements prior to the event.
Don't Include:
- Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
- Anything that wasn't reasonably knowable at the time of the event.
There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.
The Reality
This sections is included if a case involved deception or information that was unknown at the time. Examples include:
- When the service was actually started (if different than the "official story").
- Who actually ran a service and their own personal history.
- How the service was structured behind the scenes. (For example, there was no "trading bot".)
- Details of what audits reported and how vulnerabilities were missed during auditing.
What Happened
The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.
| Date | Event | Description |
|---|---|---|
| March 31st, 2022 11:52:00 PM MDT | Main Event | Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here. |
Total Amount Lost
The total amount lost is unknown.
How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?
Immediate Reactions
How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?
Ultimate Outcome
What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?
Total Amount Recovered
There do not appear to have been any funds recovered in this case.
What funds were recovered? What funds were reimbursed for those affected users?
Ongoing Developments
What parts of this case are still remaining to be concluded?
General Prevention Policies
The lesson here is about providing an account/tool with more privileges than necessary. Using a full-permissioned account when not necessary increases the breach window.
Ideally, performing key actions such as banning moderators or posting global announcements would be set up such that multiple people's approval is required. In this way, it would be nearly impossible to breach.
In our framework, we advocate for training platform operators about incidents such as these, and require the approval of two separate security sign-offs for a project to launch, which would likely catch any weak security practices. A discretionary treasury fund is available to cover losses, in addition to whatever treasury is available with projects directly.
Individual Prevention Policies
No specific policies for individual prevention have yet been identified in this case.
For the full list of how to protect your funds as an individual, check our Prevention Policies for Individuals guide.
Platform Prevention Policies
Policies for platforms to take to prevent this situation have not yet been selected in this case.
For the full list of how to protect your funds as a financial service, check our Prevention Policies for Platforms guide.
Regulatory Prevention Policies
No specific regulatory policies have yet been identified in this case.
For the full list of regulatory policies that can prevent loss, check our Prevention Policies for Regulators guide.
References
- ↑ Trezor Issues Data Breach Warning As Users Cite Phishing Attacks (May 21, 2022)
- ↑ https://www.fxempire.com/news/article/not-an-april-fools-joke-bayc-confirms-its-discord-was-compromised-955375 (Jun 19, 2022)
- ↑ @zachxbt Twitter (Jul 13, 2022)
- ↑ @zachxbt Twitter (Jun 19, 2022)
- ↑ Doodles (Jul 13, 2022)
- ↑ Official Doodles 2 NFT Trailer - YouTube (Jul 13, 2022)
- ↑ https://etherscan.io/address/0x82b9d87ffd80449ca96ec67c19f5d0631b18d5db (Jul 13, 2022)
- ↑ https://www.kraken.com/en-us/learn/what-are-doodles-nft (Jul 13, 2022)
- ↑ Bored Ape Yacht Club, Other Major NFT Project Discords Hacked by Scammers (Jul 17, 2022)