In yet another successful phishing scheme, an unsuspecting user suffered a multimillion-dollar loss in Tether.
- A user succumbs to a sophisticated phishing attack, resulting in a loss of $4.46 million in Tether.
- PeckShield, a blockchain security firm, identifies the fraudulent address linked to the fake Coinone cryptocurrency mining exchange.
- The crypto sphere continues to witness a rise in approval mining scams and other phishing tactics, leading to increased losses and shutdowns of crypto entities like NONE.
According to Etherscan data, the user lost $4.46 million worth of Tether (USDT) in the attack. The stolen funds were then transferred to an address that ends with “ACa7.”
#PeckShieldAlert The address 0x2175…f7D9 got scammed for 4.46M $USDT
Victim's address: 0x2175c0082d052872501f7fe54e1aC59858aaf7D9
Scammer's address: 0xAbb07822F471773Ff00b9444308ceEB7cf0dACa7 pic.twitter.com/Ny9CIrkBxw
— PeckShieldAlert (@PeckShieldAlert) September 21, 2023
Identifying the Scam and Fake Exchange
While details about the execution of the scam are scarce, prominent blockchain security company PeckShield flagged the address as belonging to the fraudster.
Scam Sniffer’s research also indicated that the stolen funds were directed to an address associated with a fake Coinone cryptocurrency mining exchange.
Phishing scams persistently cause havoc in the digital industry, targeting even high-profile and tech-savvy entities on multiple occasions.
Approval Mining Scam and Its Deceptive Tactics
The Global Anti-Scam Organization explains that approval mining scams deceive victims into granting permission for unrestricted withdrawals from their cryptocurrency wallets.
Fraudsters trick victims into participating in fraudulent mining pools, typically by initiating a request for a network fee in Ether ranging from $10 to $50.
These scams often disguise themselves as “mining” or “liquidity pools” and may even provide deceiving explanations through a 24/7 “customer service” chat.
“Mining scams are essentially phishing attacks pretending to be “mining” or “liquidity pools,” but instead trick you into authorizing unlimited withdrawals from your cryptocurrency wallet. They may come with a 24/7 “customer service” chat that gives you deceiving explanations.”
Increasing Losses in the Industry
Recently, NONE, a top-tier suite of trading tools for crypto and NFTs, announced the closure of its operations.
Part of the reason for the shutdown was an exploit that resulted in the loss of 41.52 ETH and NONE tokens.
An unknown crypto whale lost over $24 million in liquid-staked Ethereum after unknowingly granting token approval to scammers through “increase allowance” transactions.