Ethereum Whale Loses $24 Million in Latest Crypto Phishing Scam
9 Sep 2023 by Rory Kejzerko 1 min read
Ethereum Whale Loses $24 Million in Latest Crypto Phishing Scam

In our latest instalment of ‘who’s been scammed,’ crypto security firm PeckShield has reported that a whale lost $24 million worth of Ethereum in a phishing scam on September 6th. 

The Ethereum in question was being staked on liquidity staking provider Rocket Pool, with the unfortunate victim losing their entire Lido Staked ETH (stETH) and Rocket Pool ETH (rETH) fortunes. 

The combined 14,430 ETH-derived tokens were taken in two swift transactions (which relate to each respective token), with the 9,579 stETH tokens equating to $15.5 million, and the 4,851 rETH tokens equating to around $8.5 million (at the time of taking). 

Per PeckShield, the culprit quickly swapped the tokens for 13,785 ETH and 1.64 million Dai (DAI). The majority of the latter was then sent to an account on cryptocurrency exchange FixedFloat, with the remaining funds going to three separate crypto addresses. 

To actually get hold of the funds, the scammer used allowance/access permissions, which are ERC-20 smart contract features that enable third parties to gain spending power over coins held by someone else. In practice, it took shape through the victim offering token approvals to the scammer by signing an “Increase Allowance” option. 

Intuitively, some Ethereum community members are against this specific feature of the ERC-20 token, as it opens the door for illicit activities to take place… as shown in this exact circumstance. 

This crypto scam instalment comes just days after Australian betting casino ’Stake’ saw its Ethereum, Binance Smart Chain (BNB) and Polygon (MATIC) wallets drained for a collective $41 million. Further, the worryingly frequent nature of these attacks is a firm reminder to stay safe when navigating across Web3 platforms and crypto transactions, especially when visiting unfamiliar sites.   

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This article is intended for educational purposes and is not financial advice.