Biggest Loss of Crypto Market Today: $35M Stolen in Phishing Scam

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As a seasoned analyst with over two decades of experience in the financial markets, I have seen my fair share of scams and fraudulent activities. However, the recent surge in crypto scams is truly alarming and requires immediate attention from both individuals and regulatory bodies.

In the rapidly expanding world of cryptocurrencies, the occurrence of fraudulent activities is soaring at an alarming rate. Even with enhanced security measures and authentication processes, numerous types of scams persist due to the constant evolution of malicious actors. Consequently, during Q3 alone, con artists managed to swindle a staggering $127 million in one instance and another $46 million in September, underscoring the surge of phishing scams. Most recently, just hours ago, a scammer succeeded in stealing approximately $35 Million through a fraudulent email link.

Previously, Pig-Butchering frauds were prevalent, leading the Commodity Futures Trading Commission (CFTC) to collaborate in addressing this increasing number of instances. Currently, there’s a surge in the occurrence of Phishing schemes instead.

Crypto Market’s New Crypto Scam Stole 15,079 fwDETH

In a recent cyber incident, a fraudster managed to swipe $35 Million worth of fwDETH, marking one of the largest crypto market scams in recent history. The theft occurred when the victim unknowingly clicked on a harmful “approval” link, causing him to lose millions almost instantly.

Crazy!
Someone(probably related to @ContinueFund) lost 15,079 fwDETH(worth $36M) by signing a “permit” phishing signature 6 hours ago!
To prevent falling victim to a phishing scam, make sure you verify the authenticity of all unrecognized links and signatures before engaging with them.
— Lookonchain (@lookonchain) October 11, 2024

So far, we’ve discovered that the suspect’s address is 0x0605edee6a8b8b553cae09abe83b2ebeb75516ec, as this is where the stolen funds were transferred. Of greater significance, the victim’s wallet address 0xeab23cfe3776adf45e2e3dc56bcf739f6e0a393 appears to be associated with Continue Fund, a VC firm that typically invests in various crypto projects. However, on this occasion, it unfortunately fell victim to one of the most common Web3 cryptocurrency scams.

In this case, the hackers may have used the temporary token spender addresses generated with the CREATE2 function. It makes it difficult for the commoners and investors to detect the possible scams.

As a researcher delving into the world of cryptocurrencies, I recently stumbled upon some troubling news. Initial reports, as shared on platforms like Lookochain, highlighted a phishing incident where one malicious link led to the theft of 14,079 fwDETH tokens. However, it appears that this hacker didn’t content themselves with just this single act.

victim:
0xeab23c1e3776fad145e2e3dc56bcf739f6e0a393

scammer:
0x0605edee6a8b8b553cae09abe83b2ebeb75516ec

— Scam Sniffer | Web3 Anti-Scam (@realScamSniffer) October 11, 2024

As a researcher studying the impact of recent events on decentralized finance (DeFi), I’ve observed significant turbulence affecting businesses reliant on this sector. This disruption encompasses DeFi protocols such as PAC Finance, Orbit Finance, and others, though official announcements regarding their specific situations have yet to be made.

Another Victim Lost $32M spWETH In Similar Permit Phishing Signature

The cryptocurrency market has experienced a significant number of scams, causing concern for many. Recently, Scam Sniffer, a security company specializing in Web3, disclosed that over 10,800 individuals fell victim to phishing attacks. This high number suggests that these types of fraudulent activities are still prevalent. A notable example is an individual who lost approximately $32.43 million after misplacing 12,083 spWETH tokens.

It’s worrisome that in phishing schemes like these, con artists deceive individuals into connecting their cryptocurrency wallets to untrustworthy websites and platforms. Once the account is linked, the scammers have the ability to effortlessly withdraw all the victim’s funds without requiring any further authentication. These phishing attempts are often difficult to detect, making them susceptible to cyber theft.

Additionally, it’s worth noting that some traders are seizing chances to earn substantial gains in the cryptocurrency market, which fuels excitement about trading. For instance, a recent example saw a crypto trader accumulate an impressive $3,37 million within a single month, leaving quite a few people astonished.

Final Thoughts

According to CertiK, during Q3 of 2024, a total of $753 million was lost in various crypto scams. Of this amount, $127 million was taken through phishing scams specifically, causing concern among investors due to the increasing number of such incidents. One recent instance stands out as one of the biggest losses ever in the cryptocurrency market, with a victim losing $35 million after giving away 15,079 fwDETH. This incident not only affected the individual but also caused a drop in the dwDETH price and impacted businesses that rely on this token. Many analysts attribute this to liquidity problems surrounding the token, which has led to its decreased value. The selling of all stolen tokens by the scammer is said to be the cause of these liquidity issues.

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2024-10-11 11:36