Crypto Investor Falls Victim to Phishing Scam, Loses $2.6M

Amid the crypto market’s recovery, a victim lost a whopping $2.6 million in stablecoins in a double phishing scam. A phishing scam is a type of cyberattack in which scammers trick users into giving up private keys, seed phrases, or passwords, often by impersonating trusted platforms or wallets.

Approximately $2.6M Lost

Data from blockchain security company Cyvers revealed that the victim initially transferred 843,000 worth of USDT. They then sent an additional $1.75 million approximately three hours later. According to the security firm, the scam involved a technique called a zero-value transfer, an advanced form of on-chain phishing. 

Notably, zero-value transfers are an on-chain phishing method that manipulates token transfer functions to deceive users into sending actual funds to malicious actors. Attackers initiate zero-token transfers from the victim’s wallet to a spoofed address. 

Spoofing is a deceptive practice where someone pretends to be another person or entity. This is often for malicious purposes like phishing or data theft. It involves falsifying information to mislead recipients into believing they are interacting with a trusted source when, in reality, they are not. 

Hackers Exploiting Victims 

Notably, this latest exploit is not new in the crypto space. Despite the several security measures crypto platforms and traders take, bad actors still find loopholes. Over the years, the crypto industry has experienced and witnessed massive thefts, leading to significant losses. 

For instance, on March 28, blockchain investigator ZachXBT disclosed that Coinbase users had lost over $46 million to suspected thefts. Similarly, on the 27th of the same month, a user was scammed of 400.09 BTC, valued at $39.4 million at the time. 

According to reports, the stolen funds were transferred cross-chain from Bitcoin to Ethereum utilizing Thorchain and Chainflip. The assets were then converted into DAI, a move likely to cover their transaction trail.

Meanwhile, a Gigachad (GIGA) memecoin trader also suffered losses exceeding $6 million after falling victim to a phishing attack involving a fraudulent Zoom meeting link. Blockchain analytics firm Onchain Lens explained that the trader clicked on a fake Zoom link. The link routed them to a phishing site engineered to capture sensitive wallet data. Following the hack, the exploit triggered a significant sell-off, sharply dropping GIGA’s price.