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Phishing scam results in $11.1 million loss in crypto assets for MakerDAO delegate

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  • A phishing assault costs a MakerDAO delegate more than $11 million in MKR and USDe tokens.
  • According to Scam Sniffer, the con artist used a permit phishing signature as leverage to take the money.
  • Blockchain security companies have drawn attention to the growing threat posed by these frauds, as the perpetrators are using artificial intelligence (AI) capabilities.

CryptoCaster Quick Check:

A phishing assault on June 23 caused a cryptocurrency investor to lose $11.1 million in Maker and Pendle USDe tokens. In order to thwart any attempts at recovery, the scammer quickly converted the stolen assets for ETH, according to blockchain researcher Lookonchain.

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On-chain data indicates that the attacker converted the 2,56 million USDe into 689 ETH and the stolen 3,657 MKR into 2,502 ETH. As a result, MKR’s price fell by about 7% to $2,271, prolonging a downward trend that has seen the asset lose 17% of its value over the previous month.

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A MakerDAO delegate is the victim of a phishing scheme, according to data from Arkham Intelligence. Because they must vote on important ideas that have a big impact on how the Maker protocol runs, delegates are essential to its functioning.

This instance demonstrates the high level of sophistication needed to carry out this attack, even with the victim’s extensive experience with cryptography. The attack was successful, according to web3 security company ScamSniffer, since the victim had repeatedly clicked on phishing signs without realizing it.

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Phishing scams remain prevalent

One of the most common risks in the cryptocurrency world is phishing schemes. Attackers can assume the identity of reputable companies through these schemes, allowing them to obtain confidential information and access the cryptocurrency wallets of their victims. Crypto drainers are widely used by hackers on these phishing websites. These drainers trick gullible people into approving fraudulent transactions, resulting in significant financial loss.

As further explained by blockchain analysis firm Chainalysis:

“The operators of drainers typically pose legitimate web3 projects, luring victims into connecting their cryptocurrency wallets to the drainer and accepting transaction proposals that give the operator access of the funds inside the wallet, rather than taking advantage of victims’ usernames and passwords. Drainers can immediately and directly take users’ money if they are successful.

These phishing assaults have evolved in sophistication during the last 12 months. Scammers are employing artificial intelligence technologies to develop more convincing phishing websites that aid the theft of cryptocurrency assets, according to a recent warning from blockchain analytics company Elliptic.

As such, researchers covering the cryptocurrency space have cautioned consumers to be wary of dubious activity and to carefully confirm the legitimacy of any organization they interact with. CRYPTOCASTER® - DECENTRALIZED FREEDOM!


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