A Crypto Whale Loses $24 Million in Phishing Scam
A crypto whale recently fell victim to a phishing scam, resulting in the loss of $24 million worth of Rocket Pool Ether (rETH) and Lido staked Ether (stETH) on September 7. The scam involved a wallet that deposited 600 Ether (ETH), valued at approximately $936,000, into Tornado Cash, an Ethereum-based privacy tool. The wallet receiving the funds, labeled as “FakePhishing186943,” appears to have acquired proceeds from multiple phishing campaigns. The phishing attack targeted the whale, who lost $24 million in liquid staking derivatives after clicking on a fake link. The stolen assets included 9,579 Lido staked Ether and 4,851 Rocket Pool Ether. The scammer utilized Tornado Cash to obscure the transactions and make tracking the assets more challenging.
Phisher Takes Advantage of Crypto Whale
A crypto whale, an address with substantial digital assets, was recently tricked by a phisher, resulting in a loss of $24 million. The phisher employed a phishing attack utilizing a fake link. By clicking on it, the victim unknowingly gave the scammer transaction authorization. As a result, the phisher stole 9,579 Lido staked Ether and 4,851 Rocket Pool Ether, valued at $15.6 million and $8.5 million, respectively. These stolen assets were deposited into Tornado Cash, an Ethereum-based privacy tool known for obfuscating transactions. The scammer intended to make it harder to trace the origin of the assets. Tornado Cash has faced scrutiny from the US Treasury Department, leading to sanctions due to its exploitation by bad actors for money laundering purposes.
Concerns around Tornado Cash and Sanctions
Tornado Cash, a protocol that offers privacy features for obscuring transactions, has raised concerns with the US Treasury Department. The tool’s decentralized nature makes it attractive for illicit activities such as money laundering. In August 2022, the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Tornado Cash, alleging that North Korean hackers and other malicious actors had utilized the protocol for large-scale money laundering. Additionally, the developers and co-founders of Tornado Cash faced legal trouble, with charges of conspiracy and evasion of sanctions. One of the developers pleaded not guilty to criminal charges, while another spent time in Dutch detention for money laundering allegations.
Hot Take: Phishing Scams Continue to Target Crypto Users
This incident serves as a reminder of the persistent threat of phishing scams in the crypto industry. Even sophisticated investors can fall victim to these attacks, resulting in significant financial losses. It highlights the importance of maintaining strong security practices, such as not clicking on suspicious links or sharing sensitive information. Additionally, the use of privacy tools like Tornado Cash should be approached with caution, considering the potential risks and regulatory concerns surrounding their use. As the crypto ecosystem evolves, it is crucial for users to stay vigilant and take proactive measures to protect their assets against phishing attempts and other fraudulent activities.
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