As a seasoned analyst with years of experience navigating the volatile world of cryptocurrencies, I can confidently say that the recent $36 million loss suffered by a trader due to a cyberattack is a stark reminder of the ever-present risks in this space. The intricacies of these attacks, often disguised as legitimate transactions, make it easy for even the most diligent traders to fall victim.
On Friday, a crypto trader experienced a significant setback when they were tricked and lost approximately $36 million due to a cyberattack. The deceitful attacker managed to convince the trader to approve a fraudulent “authorization” link, which ultimately provided access to their digital wallet.
Initially, the event was brought to light by an anonymous user named Roffett.eth on platform X. They disclosed that a hacker successfully swiped 15,079 Future Wrapped Derivable ETH (fwDETH) from the trader’s digital wallet, swiftly selling off the assets. This unexpected sale led to a negative impact on the market, causing the price of the base asset, Derivable ETH ($DETH), to tumble drastically within mere minutes.
Impact on the Market
The drop in the value of $DETH had a negative impact on numerous decentralized platforms that rely on its liquidity and scalability, as per Roffett.eth’s assessment. This price discrepancy allegedly created weaknesses within PAC Finance and Orbit Finance, ultimately resulting in their exploitation.
Additionally, the anonymous user X issued a cautionary note about DuoExchange, suggesting that traders consider removing their funds from the decentralized finance platform due to potential risks associated with it.
Following Roffett.eth’s alert, blockchain analysts such as Lookonchain hypothesized that the affected party could potentially be associated with Continue Capital, a venture capital firm specializing in early-stage investments. There were rumors circulating that the company’s co-founder, Lin Xiaohong, might have been the trader who experienced the financial setback.
Crazy!
I, a fellow crypto investor, just learned about a chilling incident. Approximately six hours ago, someone – possibly connected to ContinueFund – inadvertently lost an estimated 15,079 fwDETH, equivalent to around $36 million, by signing what appears to have been a phishing signature for a “permit.” This serves as a stark reminder to be extra cautious when handling digital assets and signatures.
As a cautious crypto investor, I always make sure to steer clear of clicking unrecognized links or signing any documents that aren’t from trusted sources. I take the extra step of verifying all signatures before proceeding with any transaction to ensure my investments remain secure.
— Lookonchain (@lookonchain) October 11, 2024
Ongoing Cyber Threats
The incident is part of a worrying trend of hacking attacks within the crypto sector. In just the previous month, hackers stole approximately $120 million across 20 different attacks.
Among the businesses under attack were firms like BingX, Penpie, Indodax, Delta Prime, Truflation, Shezmu, Onyx, BananaGun, Bedrock, and CUT. One of these companies experienced a significant financial setback amounting to approximately $44 million.
Before the events that occurred in September, hackers found and used weaknesses in WazirX, India’s leading cryptocurrency exchange. In August, they managed to steal approximately $230 million from the platform, which represented around 45% of the total customer funds held by the exchange.
Over this period, multiple cyber-attacks have been observed in diverse industries. A TRM Labs report indicates that hackers managed to pilfer approximately $1.38 billion from the cryptocurrency market between January and June of 2024.
In 2023, the amount of money lost due to crypto thefts during the same period was approximately $657 million. However, as shown by the graph, there has been a substantial rise in these losses compared to that year, with experts from TRM Labs suggesting that this increase can be partly attributed to the higher average prices of tokens, which have influenced the upward trend in figures.
As the year nears its conclusion, there’s still doubt about whether more cryptocurrency-related attacks might happen.
Read More
Sorry. No data so far.
2024-10-11 14:44