North Korean NFT Hack Sparks $1M Lawsuit Against Pepe Creator

Key Points

• Jaggedsoft plans a lawsuit against Matt Furie and ChainSaw.
• Claims mismanagement and fraud after $1M NFT breach.
• Accuses parties of failing to recover investor losses.
• Community backs lawsuit amid silence from the accused.

The fallout from the North Korean NFT hack in June just got real. Jaggedsoft, the creator of the Binance API and one of the biggest collectors of Pepe NFTs, is preparing legal action against Matt Furie, the original creator of Pepe the Frog, and ChainSaw, the NFT platform where the hack occurred.

I’m done with NFTs. 💢
Most of Matt Furie’s collections are now worthless. There’s no effort to fix it, no accountability, no handoff to the community—nothing. CHAIN/SAW let this happen. I’ve seen plenty of scams in crypto, but I’ve never seen a project abandon its supporters…

— jagged (@jaggedsoft) August 4, 2025

Hackers allegedly tied to North Korea breached the ChainSaw platform in late June, stealing an estimated $1 million in NFTs. While the hack itself was damaging, Jaggedsoft argues that the real failure was in the aftermath: a total lack of transparency, accountability, or even basic response from the creators and platform.

12/ Soon I plan to publish my stats on total payments being sent out to DPRK ITWs at companies/projects to provide insight into how bad it is.

It’s depressing how many teams hire DPRK IT workers when basic due diligence would likely have prevented it.

The lack of communication… pic.twitter.com/R35A9DzgPC

— ZachXBT (@zachxbt) June 27, 2025

“They failed to respond. They failed to protect. They failed us,” Jaggedsoft stated.

He claims both Furie and ChainSaw acted with willful negligence. He also accuses them of misleading the community and covering up the extent of the breach. Now, citing consumer protection laws, Jaggedsoft is preparing a fraud case, and the crypto community is taking notice.

This is just the latest scandal in a year filled with crypto challenges—from Bitcoin and Ethereum ETFs losing $965M in July to ongoing debates around project responsibility.

Did ChainSaw and Furie Enable the North Korean NFT Hack?

Matt Furie is known worldwide for creating Pepe the Frog, a cartoon character that evolved into a meme icon and Web3 favorite. Furie’s foray into NFTs brought hype, especially from collectors like Jaggedsoft, who heavily invested in his digital artwork.

But when North Korean hackers breached ChainSaw’s systems, the reaction, or lack of it, became the real scandal. ChainSaw went silent. Furie, too, stopped posting. No statements. No recovery plan. No compensation for lost assets.

Jaggedsoft’s frustration turned into action. His accusations are clear:

• No risk disclosures on the platform.

• Failure to address major security flaws.

• He was silent and threatened him when he raised concerns.

“He [Chainsaw’s founder] said he’d ruin my life if I went public. But they already did,” Jaggedsoft revealed.

Proud that you don’t give up. We need you in this fight king

— Khalissman (@Khalissman) August 4, 2025

So far, no official lawsuit has been filed, but the announcement alone has sparked outrage. Collectors and NFT fans have taken to social media to support Jaggedsoft, demanding accountability and transparency.

this is the right thing to do jagged. extractive parties who have no respect for their customers need to learn that there are consequences for what they do. there was an obvious social contract when we bought the NFTs and that needs to be responsibility & accountability.

— path.eth 🛡️ (@Cryptopathic) August 4, 2025

It’s not just about the hack anymore; it’s about how Web3 projects respond when things go wrong. In this case, Jaggedsoft argues they did everything wrong.

The lack of communication is reminiscent of other poorly managed token events, such as the Pi Network token lockup controversy, where community trust also took a major hit.

Community Demands Accountability After the Breach

In a decentralized world where trust is currency, transparency matters more than ever. That’s the message Jaggedsoft is pushing, and the community seems to agree.

Dozens of creators, investors, and collectors have voiced support, saying the silence from Furie and ChainSaw has caused more damage than the hack itself. They say it shows a complete disregard for users, many of whom lost high-value digital assets in the breach.

As he should

— pravijn (@pravijn) August 4, 2025

While some argue that Furie was just the artist and shouldn’t be held responsible for platform-level failures, others say that his involvement in promoting and profiting from the NFTs makes him partly accountable.

This lawsuit could become a key moment in Web3 consumer protection. It raises difficult but necessary questions:

• Should artists be responsible for the platforms that sell their work?

• Can NFT buyers trust platforms that avoid legal disclosures?

• What happens when a project disappears after a major hack?

If Jaggedsoft proceeds with his case, it could set new standards for how NFT platforms handle security, risk disclosures, and post-hack damage control. Much like how the Creator Coin Index tracks emerging creator economies, this situation highlights the need for new forms of on-chain accountability.

What This Means for Web3 and NFT Regulation

The North Korean NFT hack is now more than just a breach—it’s a wake-up call. As crypto matures, investors are demanding clearer rules, safer platforms, and more responsibility from creators and developers.

This legal dispute could accelerate calls for Web3 regulation. Consumer protection laws in traditional finance are strict for a reason. When money is on the line, especially millions, people expect more than memes and hype. They want security, transparency, and consequences for failure.

If Jaggedsoft’s lawsuit gains traction, it may push other creators and NFT platforms to take security more seriously. Risk disclosures, clearer terms of use, and investor protections could soon become standard.

But there’s also a cultural shift underway. The Web3 space has often resisted regulation, championing decentralization and freedom. Now, cases like this are forcing a new conversation: how do we balance freedom with accountability?

As for Furie and ChainSaw, their silence is growing louder. With no public comment since the breach, the pressure is mounting, not just from a potential lawsuit, but from a community that feels betrayed.

Even Solana holders are beginning to expect more from meme coin leaders, as seen when 62% of Solana meme coin holders defied Yakovenko’s criticism. The demand for leadership and responsibility is rising across all sectors.

Projects with high valuations like Ripple’s $15 billion milestone are now expected to act like serious businesses, not just fun ideas. And the bar is only getting higher.