The $36M Whale Loss, the dETH Crash, and the FBI’s Market Fraud Sting
Cryptocurrencies are an extremely volatile industry where even minor mistakes can have extremely negative consequences. This week's crypto hack news brings three important events that highlight the vulnerabilities in the sector.
An overzealous whale about DeFi lost $36 million in phishing, causing deETH's price to crash. At the same time, an investor was robbed of $6m, but EIGEN Layer says its protocol is secure and has never experienced such a loss. Ultimately, US authorities arrested and charged 18 individuals and firms involved in market manipulation, including Gotbit Consulting.
Well lost $36M in phishing scam, causing dETH to crash
A whale was recently injured and 15,079 fwDETH ($36 million) was lost after a toxic signature was posted on a phishing email. The hacker immediately exported the stolen tokens, causing a massive crash in the DETH market. The token, normally pegged 1:1 with ETH, dropped more than 90% and touched a low of 0,06 ETH before returning to the 0,27 ETH range.
$6m stolen in EIGEN phishing scam EIGEN Layer says there is no protocol flaw
An investor lost about $6 million worth of Eigen to a phishing attack. The attacker changed the receipt to a fake address. However, EIGEN Layer was able to confirm that the cause of the attack was not restricted to the platform chain and that the investor's email was the only compromised account.
FBI Sting Eliminates Rip-Off Market Fraud
The US Deputy Attorney General indicted 18 individuals and crypto firms, including Gotbit Consulting, for fraud and market manipulation, and the FBI and SEC joined the Department of Justice in arresting and seizing $2.4m in cash and cryptocurrency.
The agencies employed a fake token, NexFundAI, to prove that the accused was involved in a typical market manipulation sink business. It has resulted in several arrests and is the first time the DOJ has investigated fraud in the crypto market.
User caution:
Signs and signatures should always be checked, there are fake signs and like links they should not lead to anything criminal to protect our property. The crypto space has its own risks, but by learning how to spot them, you'll survive the next scam.
