People Building 'Blockchain City' in Wyoming Scammed by Hackers

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The story is 157673109.

The security-woes dept. posted a message on Friday January 14.

CityDAO, the group that bought 40 acres of Wyoming in hopes of building a city on the ethereum block, announced this week that it was hacked and members' funds were stolen. There is an emergency notice. The CityDAO admin account has been hacked. There isn't a land drop. The project's account said to not connect your wall. CityDAO is a decentralized organization that hopes to collectively govern a blockchain city, offering citizenship and governance token in exchange for the purchase of a land NFT bestowing ownership rights to a plot of land. CityDAO's community lives on a popular service for gaming called Discord, which has become an indispensable part of the crypto community. CityDAO issues announcements, updates, answers questions, hosts a community, and issues alerts for "land drops," or opportunities to buy NFTs that represent parcels of land.

A core-team member and early investor who goes by Lyons800 was the victim of the attack. The angle of attack was detailed in a thread. The attacker posted a doctored picture of a conversation between Lyons800 and another person on another server. Lyons offered to prove it wasn't him and got on a voice call with the person who convinced the moderation to let them inspect their console. Lyons800's Discord account was hijacked by the scammer after they obtained their token. Lyons800 described this as a security violation. Lyons800 is a co-founder of CityDAO, a group that describes itself as an "investors guild" that teaches its members. Webhooks are used to connect the Discord server to other websites, and are often used to send automated messages.