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Someone Lost $6.5M Trying to Claim $2K of ‘Free’ Crypto

Of all the confusing aspects of crypto, Airdrops can be the most amazing. Airdrops rewards crypto traders with tokens for free. The value of these airdrops can be immense: In April Bored Ape Yacht Club Owners received a cryptocurrency airdrop worth about $100,000 for each monkey NFT they owned. Airdrops that sound too good to be true are often legitimate.

But not always.

Monday scammers walked away with $8 million in bitcoin and ether after deploying a successful phishing scheme. The scam focused on Uniswap, a decentralized crypto exchange where people trade altcoins like Shiba Inu and Avalanche. The scammers promised a free airdrop of 400 Uniswap tokens worth around $2,000. A few traders took the bait – they linked their wallets to a shady website – and two victims suffered huge losses.

Over $6.5 million was withdrawn from a wallet, blockchain analytics firm PeckShield told CNET. Scammers took 2,444 Ether ($2.46 million) and 201 Bitcoin ($3.96 million) from this wallet. The other wallet lost 834 ether ($903,000) and 39 bitcoin ($774,000). PeckShield told CNET that four other wallets have been infected by the phishing attack, but they have yet to be emptied.

As obvious as the fraud may seem, it is rooted in precedent. In 2020, Uniswap sent an airdrop of 400 $UNI tokens (now valued at $2,224) to every wallet that performed a trade on the platform. Crypto whales received airdrops in numerous places in 2021 worth five and even six figures.

Uniswap is a central institution for decentralized finance, or “DeFi,” as it allows punters to trade cryptocurrency through peer-to-peer technology, avoiding authority structures that govern typical exchanges like Binance and FTX. Uniswap was contacted for comment but did not respond immediately.

While crypto prices have plummeted over the past few months – Bitcoin and Ether are down 51% and 65%, respectively in the last 6 months — Fraud activity has not abated. Hackers siphoned $1.4 million worth of ether an NFT lending platform on Sundaywhich followed $100,000 being withdrawn from NFT marketplace Quixotic end of June. Between these two incidents a hacker $8.8 million stolen by Cream Finance, however eventually he returned $7.1 million of it.

Monday’s scammer targeted Uniswap liquidity providers; Users who earn interest by depositing cryptocurrency into Uniswap’s system. There are around 230,000 liquidity providers; the bad actors sent fake Uniswap tokens to at least 74,800 of them, According to blockchain security researcher Harry Denley. The name of the malicious token directed victims to a website where they could exchange the new tokens for other cryptocurrencies. Clicking on the link on this page resulted in the infection and draining of these two wallets.

Sending all of these fake tokens cost the scammers $9,042 (8.5 ether), Denley said. The lost crypto was initially reported as a hack by Uniswap, whose cryptocurrency has a market cap of $4 billion, before it was revealed to be a social engineering scam.

Someone Lost $6.5M Trying to Claim $2K of ‘Free’ Crypto Source link Someone Lost $6.5M Trying to Claim $2K of ‘Free’ Crypto

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