Title: Recent Crypto Hack: “Crypto Whale Duped Out of $24M in ETH”
Introduction:
In a shocking incident, a cryptocurrency whale fell victim to a sophisticated phishing attack that resulted in the loss of an enormous $24 million. The unfortunate event unfolded on September 6, when the investor’s entire balance of Lido Staked ETH (stETH) and Rocket Pool ETH (rETH) was drained from the liquid staking platform, Rocket Pool.
The Attack:
The attack was brought to light by cryptocurrency security firm PeckShield, which revealed that the hacker successfully siphoned off 9,579 stETH and 4,851 rETH through two swift transactions. The stolen assets were valued at approximately $15.5 million and $8.5 million respectively at the time of the theft.
Asset Conversion and Routing:
Following the theft, the perpetrator quickly converted the stolen assets into 13,785 ETH and 1.64 million Dai (DAI). Investigations conducted by PeckShield found that a significant portion of the DAI was promptly transferred to the cryptocurrency exchange, FixedFloat. Additionally, most of the remaining stolen funds were routed to three distinct addresses, as reported by the crypto tracking team MistTrack from SlowMist.
The Root Cause:
According to Scam Sniffer, an anti-scam platform, the victim unknowingly granted token approvals to the scammer by signing “Increase Allowance” transactions. This function, inherent to ERC-20 tokens, enables a third party to spend tokens belonging to another owner through smart contracts. The incident serves as a stark reminder of the potential risks involved in approving ERC-20 allowances, especially when dealing with anonymous developers who may utilize malicious smart contracts to deceive users.
Industry Response:
In response to the breach, several Ethereum liquid staking providers, including Rocket Pool, StakeWise, Stader Labs, and Diva Staking, have either implemented or are in the process of implementing a self-limit rule. This rule ensures that these providers do not control more than 22% of the Ethereum staking market. Such measures are undertaken to enhance security and prevent similar incidents from occurring in the future.
Remaining Vigilant:
This cryptocurrency hack highlights the importance of remaining cautious and vigilant in the ever-evolving digital landscape. Users are urged to exercise caution when approving token allowances, especially when dealing with anonymous developers and unfamiliar platforms. Staying informed about the latest security practices and regularly updating safeguards can help mitigate the risks associated with phishing attacks and other threats.
Conclusion:
The recent crypto hack involving a “crypto whale” losing $24 million in ETH serves as a stark reminder of the vulnerabilities present in the digital asset space. As the cryptocurrency market gains more prominence, it is essential for users, platforms, and security firms to collaborate and enforce robust security measures to safeguard investments and ensure a secure ecosystem for all participants.
Source:
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