Jaggedsoft, developer behind a top Binance API tool and a major collector of Pepe the Frog NFTs, has announced plans to sue Matt Furie—Pepe’s creator—and ChainSaw, the NFT studio behind several Pepe-linked projects. The suit alleges gross negligence and fraud for hiring a North Korean hacker, which led to a devastating exploit that resulted in investor losses exceeding $1 million.BeInCrypto
🔍 What Happened: Inside the Hacks
- In June 2025, multiple NFT collections tied to Matt Furie—such as Replicandy, Peplicator, Hedz, and Zogz—were compromised after a North Korean infiltrator posing as an IT hire gained full control of the mint contracts. Over $310K in value was siphoned as new tokens were minted and dumped to zero value.Live Bitcoin News+12Cryptonews+1299Bitcoins+12
- Days later, a separate launch platform called Favrr employed a fake CTO—also suspected to be North Korean—and lost an additional $680K.Live Bitcoin News+14Cryptonews+14Coindoo+14
- On-chain investigator ZachXBT tracked the wallet flows, VPN logs, and GitHub profiles, tying the breach pattern to DPRK-based cyber groups, potentially affiliated with the Lazarus operation.Binance+12Cryptonews+12decripto.org+12
⚠️ Why Jaggedsoft Is Suing
- Negligent hiring & lack of safeguards: ChainSaw gave the hacker high-level access without vetting, and no risk disclosure was added.
- Post-hack silence: After the exploit, ChainSaw deleted its public warnings and Matt Furie remained mute on social media. Both have disabled community access channels.Live Bitcoin News+13Cryptonews+13BeInCrypto+13
- Alleged fraud under consumer law: Jaggedsoft claims neither Furie nor ChainSaw took responsibility or attempted investor reimbursements, and threats were made to him when he raised concerns.BeInCrypto
📊 The Broader Impact on NFT Security
- Estimated losses exceeded $1M: Coordinated contract hijacks devastated several collections tied to Pepe and Favrr.Coindoo+12Cryptonews+1299Bitcoins+12
- Red flags ignored: Alleged attackers were traced to North Korea via GitHub settings and VPN traces, raising urgent questions about vetting remote developers.CryptonewsCoindooBenzinga
- Wake-up call for the NFT sector: Experts warn this incident demonstrates how vulnerable NFT projects can be when lacking basic cybersecurity hygiene—which may be exploited via social engineering or fake freelance roles.BeInCrypto+12decripto.org+12Coindoo+12
✅ Bottom Line
This high-profile hack and ensuing lawsuit highlight a serious lapse in security and responsibility by key figures in the NFT space. It serves as a stark reminder: insider risks are real—and due diligence is non-negotiable. As lawsuits unfold, stakeholders and collectors must demand transparency and defense measures to prevent similar breaches in the future.
