$1 Million Extracted From Pepe NFT Ventures in Orchestrated Contract Takeover
A series of NFT collections associated with Matt Furie, the originator of the Pepe meme, and the ChainSaw studio have experienced successive contract hijacking incidents that resulted in over $1 million being taken. The perpetrators seized mint contracts, siphoned off funds, and generated new tokens, erasing value and leaving collectors in disbelief. Numerous fans were taken aback to see the Pepe creator’s NON-FUNGIBLE TOKEN initiatives assaulted by intruders possessing extensive access to mint capabilities.
The robbery occurred in multiple stages over several days and various collections, indicating meticulous planning and a profound comprehension of the project’s structure. The fact that the attackers obtained control from within the contract has raised significant alarm within the NON-FUNGIBLE TOKEN community.
The Sequence of the Attack
It initiated in the early hours of June 18 when the Replicandy mint contract, which is part of ChainSaw’s ecosystem, was compromised. Ownership was discreetly shifted to a new address, granting the attacker full authority. They drained the mint funds and subsequently reopened the contract for the creation of new tokens. These were launched quickly, inundating the crypto market and plummeting prices.
1/ Several projects associated with Pepe creator Matt Furie & ChainSaw, along with another initiative Favrr, were compromised in the last week, leading to approximately ~$1M stolen
My examination connects both breaches to the same group of DPRK IT professionals who may have been inadvertently employed as developers. pic.twitter.com/85JRm5kLQO
— ZachXBT (@zachxbt) June 27, 2025
Just a few days later, the same tactics were executed on three additional ChainSaw-related collections: Peplicator, Hedz, and Zogz. At that moment, the total stolen value was estimated to surpass $300,000, but it was later evident that the attacks did not end there. The thief transferred the stolen assets through various wallets before cashing out via the MEXC exchange while remaining several steps ahead of monitors.
On-chain analysts, including ZachXBT, connected the activities to wallets previously involved with earlier contract breaches. Their investigation indicated that the operation was not simply opportunistic but rather methodical.
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Accusations Directed at Freelance Code Hires
The situation took another twist when investigators found GitHub profiles associated with developers who seemed to be situated in the U.S. but were employing tools and configurations linked to North Korea. VPN data and regional settings raised alarm bells. The theory is that some of the contract access may have originated from developers engaged through open platforms, gaining control over sensitive systems without a thorough vetting process.
In a different yet similar episode, a relatively new NFT initiative known as Favrr lost $680,000 under nearly the same circumstances. Their CTO disappeared, and the stolen funds followed the identical laundering trajectory. This has heightened concerns as many believe that several projects might have been compromised through the same outsourcing channels.
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Consequences and Silence
The Favrr team declared their intention to reimburse users and perform a comprehensive examination of their contract setup. In contrast, ChainSaw and Matt Furie opted for a different strategy. They closed public communication channels, removed contact forms, and left collectors in the dark regarding what, if anything, will be done.
The floor prices for impacted collections have plummeted. While some holders are optimistic about a recovery plan, others are beginning to categorize the tokens as a total loss.
Implications for DIGITAL COLLECTIBLE Protection
This event underscores a larger issue in the NON-FUNGIBLE TOKEN arena. An excessive number of projects rely on external developers without appropriate safety measures in place. Mint contracts are formidable instruments. Once someone obtains access, they can alter the parameters, unlock assets, and generate or obliterate value within moments.
As a result, collectors are posing more questions before engaging in new drops. Who controls the contracts? How is the code scrutinized? What type of security protocols are established?
Without clear resolutions, this may not be the last instance in which an entire community witnesses its assets disappear overnight.
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Key Takeaways
- Cybercriminals took over $1 million from Pepe DIGITAL COLLECTIBLE collections by taking over smart contracts related to ChainSaw studio and Matt Furie.
- The assaults targeted numerous collections, draining assets and producing new tokens that caused floor prices to crash across projects like Peplicator and Hedz.
- Indications suggest the breach was facilitated by freelance developers, with dubious affiliations to North Korea and inadequate internal safety measures.
- A related breach affected the Favrr NFT project for $680,000, following the same laundering methods, intensifying fears of wider vulnerabilities.
- This emphasizes an increasing risk in the NFT sector, where project teams provide unverified contractors access to mint-level permissions without adequate protections.
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