Cryptocurrencies continue to be a highly volatile industry where even the smallest mistakes can result in significant losses. This week’s crypto hack news highlights three major events that underscore the vulnerabilities present in the sector.
A whale, who was overly enthusiastic about DeFi, fell victim to a phishing scam and lost a staggering $36 million in fwDETH tokens. This unfortunate incident led to a dramatic crash in the price of dETH, with the token plummeting by over 90%. The market eventually stabilized, but not before causing panic among investors.
In a separate incident, an investor lost approximately $6 million worth of tokens in a phishing attack targeting EIGEN. Despite the theft, EIGEN Layer reassured users that there was no flaw in the protocol itself. The attacker had gained access to the investor’s email and manipulated the transaction receipt to redirect the funds.
On a different note, U.S authorities took action against market manipulation in the crypto space by charging 18 individuals and firms, including Gotbit Consulting. The FBI, SEC, and Department of Justice collaborated to arrest the suspects and seize $2.4 million in cash and cryptocurrencies. The investigation revealed a scheme involving the use of a fake token, NexFundAI, to carry out wash trading and manipulate the market.
It is crucial for users to exercise caution in the crypto space. Verifying signs and signatures, as well as being vigilant about links to prevent falling victim to scams is essential. By educating oneself on the risks and learning how to identify potential threats, individuals can better protect their assets in the ever-evolving world of cryptocurrencies.