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

The number of crypto scams is rising exponentially in the crypto market. Despite the increased security and authentication methods, various types of scams still exist, as the bad actors are also developing. As a result, in Q3, the scammers stole $127 million and $46 million in September, revealing the rising incidents of phishing scams. The newest one was just a few hours ago when another scammer stole another $35 Million from a phishing signature link.

Earlier, the Pig-Butcherinng scams were most common, causing the CFTC to team up to fight these rising cases. However, now the cases of Phishing styles are rising these days.

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

In a new cyberattack, a scammer stole $35 Million worth of fwDETH, making it one of the biggest crypto market scamming incidents in recent. It happened after the victim clicked on a malicious “permit” signature, making him lose millions within seconds.

Crazy!

Someone(probably related to @ContinueFund) lost 15,079 fwDETH(worth $36M) by signing a “permit” phishing signature 6 hours ago!

To avoid being phished, please do not click on any unknown links and do not sign any unknown signatures.
Always double-check when signing… pic.twitter.com/dTG4Uzsf43

— Lookonchain (@lookonchain) October 11, 2024

Till now, it has been revealed that the hacker’s address is 0x0605edee6a8b8b553cae09abe83b2ebeb75516ec, as this is one which offloaded the stolen funds. More importantly, the victim’s wallet address 0xeab23cfe3776adf45e2e3dc56bcf739f6e0a393 probably belongs to Continue Fund, a VC firm that invests in other crypto projects, but this time, it became the victim of the most common Web3 crypto 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.

This news came to attention after popular analytics platforms like Lookochain posted on X, revealing how one phishing signature link led to the loss of 14,079 fwDETH. However, the hacker did not just stop there. The Crypto Sleuth revealed that the phishing scammer has already sold all these stolen fwDETH tokens, causing big liquidity issues and price drops. Another crypto user, Roffett.eth explained that the ripple effect has surrounded the token after this sudden sell-off of fwdETH.

victim:
0xeab23c1e3776fad145e2e3dc56bcf739f6e0a393

scammer:
0x0605edee6a8b8b553cae09abe83b2ebeb75516echttps://t.co/3q1FPBx8Jc

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

With this, businesses that are dependent on fwDETH also felt heavy disruption. It includes DeFi protocols like PAC Finance, Orbit Finance, and others. However, these platforms have not made any official announcement yet.

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

The crypto market is packed with such crypto scam incidents, worrisome to many. Scam Sniffer, a Web3 security firm, revealed that these phishing attacks turned 10,800 people into victims. Even in this, the number is quite high in these permit phishing signatures. A prime example is this victim who lost $32.43M after losing 12,083 spWETH tokens.

It is concerning as in such phishing scams, the scammers trick people into attaching their crypto wallets to fraudulent sites and services. Once the account gets linked, the scammers can easily withdraw all the victim’s funds without authentication. These phishing attempts are usually challenging to identify, making them prone to hacks.

Meanwhile, there are also opportunities where traders make heavy profits, building this hype around the crypto market and trading. Recently, a crypto trader made $3,37M in just one month, shocking many.

Final Thoughts

As per CertiK, the Q3 of 2024 faced the loss of $753 million in various crypto scams. Out of this, $127M was stolen in phishing scams alone, concerning the investors on the rising cases. One recent case has become one of the biggest losses in the crypto market, where the victim lost $35M after losing 15,079 fwDETH. Not only did this impact the victim, but the dwDETH price and the business dependent on this token. Per many analysts, there are liquidity issues around the token, bringing the price down. It is the result of the scammer selling all of these stolen tokens.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.