Blockchain security company Scam Sniffer reported that a phishing scam resulted in the loss of 15,079 fwDETH worth approximately $36 million to the addresses of cryptocurrency whales.
The phished address may be linked to venture firm Continue Capital, according to data from Arkham Intelligence. The company has not yet commented on the incident.
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Typically, wallet leakers provide scammers with phishing tools, such as fake social media accounts, websites, etc., in exchange for a portion of the stolen funds. In 2023, these phishing services stole $295 million from 324,000 victims.
Phishing scams like this remain an ongoing problem in the cryptocurrency sector. Scam Sniffer reported that these attacks resulted in approximately $126 million in losses in the third quarter of 2024 alone.
DETH depeg
This attack caused significant disruption in the DeFi market, resulting in the peg of DETH, an asset to maintain a 1:1 exchange rate with ETH.
On-chain analyst Ember CN said the attackers quickly exchanged the stolen DETH for ETH through decentralized exchanges. However, due to the lack of liquidity in the DETH pool, the attacker only received 2,288 ETH out of the 14,079 DETH sold.
Nonetheless, this action led to a large split between DETH and WETH as the pool was depleted. The value of the stolen assets plummeted 85%, from $35.98 million to $5.5 million.
In an October 11 post about It said:
“We are aware of recent phishing attacks on some whales from Duo. More than 10,000 DETH were dumped in AMM, causing DETH price to fall.”
The total value of assets locked on the platform plummeted from $103 million to $86 million in just one day, according to DeFillama data.