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Crypto Scams and Hacks: A Wave of Attacks Hits the Industry

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The cryptocurrency industry has been hit with a wave of attacks and hacks in recent days, with several high-profile incidents reported. In the largest reported phishing attack so far in June, a user of the Bittensor (TAO) artificial intelligence platform lost over 28,000 tokens worth $11.2 million.

The attacker split up the funds into 18 different wallet accounts, which were then consolidated into 16 accounts. The funds were then bridged from the TAO network to Ethereum and swapped for ETH and USDC stablecoin using three different decentralized exchanges.

The attack was reported by onchain sleuth ZachXBT through his Telegram channel. The attacker’s tactics, including splitting up funds into multiple wallets and then recombining them, are a common tactic used by scammers to circumvent money laundering detection systems on centralized exchanges.

Phishing scams are one of the most common ways for crypto users to lose their funds from an attack. In a phishing scam, the attacker creates a fake website that appears to be part of a legitimate protocol, such as a decentralized exchange or lending app. However, the site is actually malicious and not authorized by the legitimate protocol’s team.

In another incident, Microsoft has patched a “zero-click” vulnerability that could have allowed attackers to execute code on Outlook users’ devices without requiring them to download or execute a file. The vulnerability, discovered by cybersecurity firm Morphisec, could have allowed attackers to steal key vault files stored on the device, potentially leading to crypto losses.

In a separate incident, DeFi protocol UwU Lend was exploited twice by the same attacker over a period of three days. The first attack drained $20 million from the protocol, while the second attack drained an additional $3.7 million.

The attacker manipulated the price oracle for Ethena Staked USD (sUSDe), causing it to show false prices. This allowed some liquidity pools to lend $20 million more than they otherwise would have been able to, and the attacker then pocketed these funds for themselves.

In another incident, a user of OKX lost over $2 million from a deepfake scam generated through artificial intelligence (AI). The attackers purchased Lai J. Fang Chang’s personal data on Telegram and used it to create a “video application synthesized by AI to change mobile phone number.”

In a separate incident, blockchain researcher SomaXBT accused Lykke exchange of hiding its $22 million loss from a June 4 hack. The exchange had reportedly stated on Discord that the platform was undergoing maintenance, but SomaXBT discovered that over $19 million of Bitcoin (BTC) and ETH had been transferred from multiple wallet accounts into a new address.

The exchange later acknowledged the attack and apologized to its users, promising to repay all users.

Source: Cointelegraph

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