Pepe Meme Creator Faces Lawsuit Over Alleged Role in North Korean NFT Cyber Heist

When memes meet geopolitics: The anonymous artist behind the viral Pepe frog NFT collection just got slapped with a lawsuit that reads like a crypto thriller.

From dank memes to dark web deals

Federal prosecutors allege the creator's platform became an unwitting pawn in a $100M+ NFT hack orchestrated by North Korean operatives—proving once again that in crypto, even cartoon frogs can get tangled in international intrigue.

Security flaws or willful blindness?

The complaint suggests basic smart contract vulnerabilities allowed hackers to drain wallets for months. 'Like leaving your Lambo running outside a hackers' convention,' quipped one blockchain analyst.

As the case unfolds, it's another reminder that in the wild west of Web3, the line between 'disruptive innovation' and 'regulatory nightmare' remains razor-thin—especially when Pyongyang's IT department starts window shopping for JPEGs.

Pepe’s North Korean NFT Hack

Pepe the Frog is a classic symbol for internet memes and, therefore, prominent in the crypto community, but its creator only joined Web3 recently.

Matt Furie, the artist who first created Pepe 20 years ago, pivoted to NFT creation until disaster struck. North Korean hackers penetrated the project in late June, and a major fan is now planning to sue.

3/3 In 4 years CHAIN/SAW took in over $25 million, then started ignoring red flags, and kept quiet while the community took the hit. They hired the wrong people, skipped basic checks, ignored security, and let a hack happen—then tried to hide it. That’s not just unethical; it’s…

Jaggedsoft, creator of the Binance API, is the largest collector of Matt Furie’s NFT art. However, it seems he’s reached a boiling point.

After the North Korean hack, Furie and ChainSaw were criticized for failing to respond to community concerns. More than a month later, that rage has turned apopleptic. Neither Furie nor ChainSaw has posted on X since before the hack.

Does Jaggedsoft Have a Case?

To be clear, North Korean hackers are extremely dangerous, perpetrating the greatest heist in crypto history this year. However, not all thefts are created equal, and not all hackers are in the Lazarus Group.

A recent exposé found that hiring these infiltrators is an extremely clumsy move, and serious projects frequently sniff out potential attackers.

Jaggedsoft asserted that Furie and ChainSaw combined mismanagement with willful negligence and a botched coverup to create a genuine example of fraud.

He intends to sue on consumer protection grounds, noting that ChainSaw never put a risk disclosure on their platform. Jaggedsoft discussed his intense feelings of disgust and betrayal that led to this:

“[ChainSaw’s founder] said he WOULD fuck my life up if I litigate, but I told him he already did, so I have nothing to lose. I didn’t want to involve Matt [Furie] in any of this drama; he did the art and that part came out great. But, he is also culpable for deceptive behaviors… It’s our duty to unite against these types of bad actors and purge them from this space once and for all,” he said.

So far, he only announced his intention to pursue legal action, but it doesn’t seem like a case has been filed. However, Jaggedsoft already received huge positive feedback from the community.

There are correct ways to respond to massive platform failures and ways that inspire user resentment. At this point, the North Korean hack itself is not the issue.

If ChainSaw had taken more action to assess security failures and reimburse investors, this might’ve been avoided.