Jaggedsoft, the creator of Binance API, is planning to sue over the recent North Korean NFT hack. He is targeting Matt Furie, the creator of Pepe the Frog, and ChainSaw, an NFT platform that was attacked for 1 million USD in June.
Specifically, he alleges that poor management and intentional negligence facilitated the hack, and the company did nothing to recover losses for investors afterward. This will apply consumer protection laws in a fraud case.
The Pepe NFT Hack from North Korea
Pepe the Frog is a classic internet meme icon and therefore, prominent in the crypto community, but its creator has only recently joined Web3.
Matt Furie, the artist who created Pepe 20 years ago, had moved to creating NFTs until the disaster occurred. North Korean hackers infiltrated the project in late June, and a major fan is planning to sue.
Jaggedsoft, the creator of Binance API, is the largest collector of Matt Furie's NFT art. However, it seems he has reached a breaking point.
After the North Korean hack, Furie and ChainSaw were criticized for not responding to community concerns. More than a month later, that anger has become intense. Both Furie and ChainSaw have not posted on X since before the hack.
Does Jaggedsoft Have a Valid Reason?
Clearly, North Korean hackers are extremely dangerous, carrying out the largest theft in crypto history this year. However, not all thefts are the same, and not all hackers belong to the Lazarus group.
A recent investigation discovered that hiring these infiltrators is an extremely clumsy move, and serious projects usually detect potential attackers.
Jaggedsoft claims that Furie and ChainSaw combined poor management with intentional negligence and a failed cover-up to create a true example of fraud.
He intends to sue based on consumer protection, noting that ChainSaw never issued a risk warning on their platform. Jaggedsoft shared the intense feeling of disgust and betrayal that led to this:
"[ChainSaw's founder] said he would destroy my life if I sue, but I told him he already has, so I have nothing left to lose. I don't want to drag Matt [Furie] into any trouble; he made art and that part was great. But, he also has a responsibility for these deceptive actions... We have a duty to unite against these bad actors and eliminate them from this space once and forever," he said.
So far, he has only announced his intention to pursue legal action, but it seems no lawsuit has been filed yet. However, Jaggedsoft has received significant positive feedback from the community.
There are proper ways to react to major platform failures and ways that cause user outrage. At this point, the North Korean hack is not the main issue.
If ChainSaw had acted more to assess security failures and compensate investors, this could have been avoided.
