Millionaire Investor Loses $24M to Crafty Crypto Scammers
The cryptocurrency landscape remains fraught with risks, including scams and security breaches.
In a recent incident, a crypto investor lost over $24 million to a sophisticated phishing scam. The victim was a major liquidity provider on the Uniswap DEX, active in various DeFi protocols and blockchain networks.
— Scam Sniffer (@realScamSniffer) September 7, 2023
This scam unfolded when the victim unwittingly granted the scammer access to their tokens via “increaseAllowance” transactions, resulting in the theft of $24.23 million in stETH and rETH. The scammer’s address was linked to ten phishing sites.
Blockchain security firm Peckshield confirmed that the stolen assets were converted into 13,785 ETH and 1.64 million DAI. Some of the funds were sent to FixedFloat, a platform known for token swaps at fixed rates.
In another incident, the crypto casino Stake experienced a hack, resulting in a $40 million loss.
Hacks and scams continue to plague the digital asset industry, with Q2 2023 seeing losses of over $313 million, according to a Certik security report.