Cryptocurrencies are extremely dynamic industries where even small mistakes can have extremely negative consequences. This week’s crypto hacking news brings with it three rather significant events that demonstrate the weaknesses in the sector.
A whale, who was overly enthusiastic about DeFi, lost $36 million to phishing, leading to the collapse of dETH prices. At the same time, an investor suffered from the token theft of $6 million, but EIGEN Layer claimed that its protocol was secure and did not experience such a loss. Ultimately, US authorities decided to charge those involved in manipulating the markets, arresting 18 individuals and companies, including Gotbit Consulting.
Whale loses $36 million to phishing fraud, causing dETH to plummet
A whale was recently compromised and lost 15,079 fwDETH ($36 million) after putting a poisonous signature on a phishing email. The hacker transferred the stolen tokens almost immediately, causing a very sharp drop in the dETH market. The token, typically pegged 1:1 to ETH, fell more than 90%, reaching as low as 0.06 ETH before returning to the 0.27 ETH range.
$6 Million Stolen in OWN Phishing Scam; No protocol error, says OWN Layer
An investor lost about $6 million worth of tokens, OWN, to a phishing attack. The attacker changed the receipt to a false home address. However, EIGEN Layer was able to reassure that the reasons for the attack were not anchored in the platform’s on-chain and that the investor’s email address was the only account compromised.
FBI Sting Eliminates Market Manipulation With a Ripoff
The US Deputy Attorney General has charged 18 individuals and crypto companies, including Gotbit Consulting, with fraud and market manipulation, with the FBI and SEC joining the Justice Department in arresting them and recovering $2.4 million in cash and confiscate cryptocurrencies.
The agencies used a fake token, NexFundAI, to establish that the suspect was involved in a common market manipulative vice of wash trading. It resulted in the arrest of several people, and was the first time the DOJ conducted a criminal investigation into crypto market manipulation.
NB:
Signs and signatures should always be checked because there are also fake ones and as for links, they should not lead to something criminal to protect our assets. The crypto space has its inherent dangers, but learning how to identify them will help you survive the next scam.
