Cryptocurrencies are a fast-paced industry where even small errors can lead to significant consequences. This week’s crypto news highlights three major events that showcase vulnerabilities within the sector.
An overzealous DeFi enthusiast lost $36 million in a phishing scam, causing dETH prices to plummet. Simultaneously, an investor fell victim to a $6 million token theft, although EIGEN Layer maintained that its protocol remained secure. In addition, U.S authorities cracked down on market manipulation, arresting 18 individuals and firms, including Gotbit Consulting.
Whale Loses $36M in Phishing Scam, Causing dETH to Fall
A whale lost 15,079 fwDETH ($36 million) after mistakenly clicking on a phishing email. The hacker swiftly cashed out the stolen tokens, leading to a sharp decline in the dETH market. The token, typically equivalent to ETH, plummeted by over 90% before stabilizing.
$6M Stolen in EIGEN Phishing Scam; No Protocol Flaw, Says EIGEN Layer
An investor lost $6 million in EIGEN tokens due to a phishing attack. EIGEN Layer clarified that the breach was limited to the investor’s email account, with no flaws in the platform’s security.
FBI Sting Eliminates Market Manipulation With a Rip-Off
The U.S. Deputy Attorney General charged 18 individuals and crypto firms for fraud and market manipulation. The FBI, SEC, and DOJ collaborated to arrest the suspects and seize $2.4 million in assets.
Using a fake token, NexFundAI, authorities uncovered a widespread market manipulation scheme. This marks the first criminal investigation of its kind in the crypto market.
User caution:
Always verify signs and signatures to prevent falling prey to phishing scams. Stay vigilant and protect your assets by avoiding suspicious links. Educate yourself on potential risks in the crypto space to avoid becoming a victim of fraud.