Hacker Steals $385,000 Worth of Digital Assets in SIM-Swapping Attacks
A hacker has executed SIM-swapping attacks on friend.tech users, resulting in the theft of approximately $385,000 worth of digital assets within the past 24 hours. Blockchain sleuth ZachXBT revealed on Twitter that the scammer had stolen 234 ETH from four different friend.tech users through these attacks.
One of the victims of this recent wave of SIM-swapping attacks, @sumfattytuna, shared their experience on Twitter. They revealed that their phone was SIM-swapped at an Apple store and their wallet was compromised as a result.
Earlier this week, another group of friend.tech users fell victim to the same attack and lost all their funds, resulting in approximately 109 ETH being stolen.
$20 Million of Friend.tech’s TVL is At Risk
According to Manifold Trading, a company specializing in tools for the industry, there is a risk of $20 million out of friend.tech’s total locked value (TVL) of $50 million due to SIM-swaps. The company emphasized that if one-third of FriendTech accounts are connected to phone numbers, then $20 million is at risk.
Manifold Trading also highlighted the potential vulnerability in friend.tech’s setup, stating that a rogue developer could reconstruct private keys using user data in their database. As a solution, they recommend implementing two-factor authentication (2FA) to enhance account security protocols.
Friend.tech Sees Continued Growth
Friend.tech has experienced ongoing growth in its user base and protocol fees. According to Dune Analytics, the total protocol fees have reached 11,764 ETH (worth over $19 million) with nearly 9.9 million cumulative transactions. The platform attracted notable crypto personalities and influencers, such as Cobie, HsakaTrades, Grayson Allen, and Garry Tan.
Friend.tech has even expanded its user base by attracting creators from platforms like OnlyFans, offering them access to exclusive content and private group chats. The platform’s model revolves around the belief that influencers play a crucial role in the success of crypto startups.
Initially built on Coinbase’s blockchain network Base, friend.tech injected excitement into the chain that had previously been plagued by token scams. Its rapid increase in activity led Base to briefly surpass Ethereum in terms of transactions per second.
Hot Take: Friend.tech Faces Major Security Concerns Amid SIM-Swapping Attacks
The recent SIM-swapping attacks on friend.tech users highlight significant security vulnerabilities within the platform. With approximately $385,000 worth of digital assets stolen and $20 million of the total locked value at risk, immediate action is necessary.
To safeguard user funds and prevent further attacks, friend.tech should prioritize the implementation of robust security measures such as two-factor authentication (2FA). This will add an extra layer of protection against SIM-swapping attempts and ensure enhanced account security for all users.
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