How $4.3 million in Crypto was stolen in a phishing scam

How On-Chain Detective Foiled a $4.3 Million Crypto Phishing Attack


On-chain sleuth ZachXBT foiled a crypto-phishing scheme to swipe $4.3 million in Artificial Liquid Intelligence (ALI) tokens.

This event highlights the critical role of proactive cyber security efforts in the crypto community.

A hacker employing the infamous Inferno Drainer has compromised a wallet containing 113,102,183 ALI tokens. The swift action that followed is a testament to the power of community management and expert intervention in the crypto ecosystem.

Upon hearing of the breach, ZachXBT, along with alarmed community members, immediately alerted the main team. As a result, an emergency vote was called. The community decided to burn the hacked tokens, which effectively removes the threat of the hacker.

Phemex

“After seeing the message from the Scam Sniffer, I immediately alerted the core team and investors who helped gather emergency community voices to burn the stolen tokens after the victim's consent,” said ZachXBT.

Despite the move from the community, the value of the Artificial Liquid Intelligence token has yet to recover. As of writing, ALI is trading at $0.03, down around 7% in the last 24 hours.

Read more: Top 9 Artificial Intelligence (AI) Cryptocurrency in 2024

Artificial Liquid Intelligence (ALI) Price Performance. Source: BeInCrypto

Notably among ALI token holders is billionaire entrepreneur Mark Cuban, whose investment acumen is well-documented. Cuba's entry into ALI tokens, valued at over $480,000, highlights the potential trust of AI-driven crypto assets. Rich in various altcoins, his portfolio reflects the breadth of his investment strategy.

Read more: 13 Best AI Crypto Trading Bots to Maximize Your Profits

This incident highlighted the importance of community vigilance and the impact of rapid coordinated responses to cyber threats. ZachXBT's investigative skills have been useful in previous cases, such as when there was suspicious activity around crypto exchange BitForex. BitForex's discovery of unusual outflows and subsequent withdrawal interruptions raised concerns among users.

Moreover, the work is more than exposing the flaws of the exchange. Recently, ZachXBT exposed a phishing scam that defrauded MicroStrategy followers on X, causing huge financial losses to unsuspecting victims.

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