DeFi protocols face make-or-break test as Discord scams escalate

DeFi protocols are locking down or abandoning Discord support as scams, DM phishing and a Zendesk-linked ID breach expose users to escalating security and impersonation risks.

Summary

• Morpho will switch its public Discord to read‑only from Feb. 1, 2026, steering users to Intercom-style ticketed support with translation and automation instead of open chats.​
• DefiLlama and others now favor live chat and email tickets, arguing Discord makes it “impossible” to fully block DM scams even with verification and stricter moderation.​
• An October breach of Discord’s Zendesk support vendor exposed around 2 million passport and driver’s license images from age‑verification appeals, intensifying privacy concerns.

Decentralized finance protocols are withdrawing from public Discord servers, citing security concerns as the platform has become a target for scammers, according to industry announcements and protocol executives.

Morpho, a major DeFi lending protocol, announced this week that its public Discord server would be placed into read-only mode from February 1, 2026. The protocol stated it would redirect users to a dedicated help page and chat-based support system instead.

DeFi teams and Discord

The decision reflects concerns among DeFi teams that Discord has become a venue for scammers who target users seeking assistance, according to the protocol’s announcement. Morpho stated the change was aimed at providing “safer, more reliable support” through controlled channels rather than open chat rooms.

Paul Frambot, Morpho’s co-founder and chief executive, stated that Discord had become “more negative than positive” from a user support perspective, citing persistent noise and scam attempts despite moderation efforts.

Morpho co-founder Merlin Egalite said the platform’s structure made it difficult to fully protect users from direct-message scams, even with safeguards in place. Egalite stated the team has been testing alternative tools, including Intercom, which offered features such as ticketing, instant translation, and automated assistance while reducing exposure to impersonation attacks.

DeFi data platform DefiLlama has also moved away from Discord, shifting toward live support chats and email-based ticket systems, according to its founder. The platform’s pseudonymous founder, known as 0xngmi, stated Discord makes it “impossible to protect users from getting scammed.” DefiLlama has adopted a hybrid approach, keeping Discord available behind additional verification steps while directing most users toward alternative support channels.

Marc Zeller, founder of Aavechan Initiative, called Discord “full of scammers” and stated Morpho’s move should prompt other major protocols to reconsider their reliance on the platform. Duncan Cock Foster, co-founder of Nifty Gateway, stated Discord moderation had been one of the most exhausting processes of his business and described Morpho’s decision as reasonable.

The shift has prompted debate within the DeFi community about the trade-offs of abandoning open community spaces. Some community members have argued that Discord, despite its security issues, has been central to peer-to-peer collaboration, allowing users to share experiences and follow development discussions in real time, according to social media commentary. Others have countered that features such as disabling direct messages, stronger verification, and on-chain tooling can significantly reduce scam activity if properly implemented.

Security concerns around Discord were heightened by an October incident in which the company confirmed that an unauthorized party accessed a third-party Zendesk support system, exposing sensitive data linked to age verification appeals. Cybersecurity researchers claimed that more than two million passport and driver’s license images were exfiltrated in the breach, raising questions about data handling practices on the platform.