Hackers Steal $1 Million in Cryptocurrency from Web3 Projects

Hackers posing as legitimate IT personnel have infiltrated several Web3 projects, resulting in approximately $1 million in cryptocurrency losses over the past week. The onchain investigator and cybersecurity analyst ZackXBT revealed that multiple entities, including Favrr, a Web3 fan-token marketplace, and NFT projects Replicandy and ChainSaw, were targeted. The hackers exploited the minting mechanisms of these NFT projects, minting large quantities of NFTs, selling them, and causing the price floor to drop to zero, thereby extracting profit.

Following the exploits, the stolen funds were transferred through various exchanges and multiple wallets. The funds from the ChainSaw hack remained largely dormant, while the stolen crypto from Favrr was moved to nested services. This incident highlights the ongoing issue of malicious software developers infiltrating crypto and blockchain projects, leading to financial losses for users and undermining the efforts of software development teams globally.

The infiltration of crypto and blockchain projects by malicious actors is not an isolated incident. In November 2024, cybersecurity researchers identified a team of hackers with ties to the North Korean government, known as "Ruby Sleet," targeting aerospace and defense contractors in the US. These hackers also began targeting IT firms, setting up fake recruitment initiatives and employing social engineering scams to infiltrate organizations.

In May 2025, a crypto exchange reported a data leak and subsequent extortion attempt. External threat actors bribed several customer service contractors to steal account data from a large number of clients, using it as leverage to extract a ransom from the exchange. The data breach impacted an estimated 69,461 users, with personal details such as addresses, telephone numbers, and other identifiers being leaked.

These incidents underscore the growing threat of internal security breaches in the crypto and blockchain industry. As the industry continues to evolve, it is crucial for companies to implement robust security measures to protect against such threats. The financial losses and reputational damage caused by these breaches highlight the need for enhanced cybersecurity protocols and vigilance in the face of increasingly sophisticated cyber threats.