Phishing Attack Drains $35 Million from Crypto Whale’s Wallet

A crypto whale’s fortune vanished in an instant as a sophisticated phishing scam drained $35 million in fwDETH, sparking chaos in the DeFi market and leaving experts stunned.

Security firm Scam Sniffer first reported the incident, revealing that the whale was tricked into signing a fraudulent “permit” message, which allowed the attacker to drain the funds. The compromised address was identified as 0xEab2E…a393.

Security firms PeckShield and BlockSec confirmed the attack. BlockSec co-founder Yajin Zhou explained that the attacker used the signed permit message to withdraw fwDETH tokens from the whale’s account. The incident caused the whale to lose a substantial amount of fwDETH, leading to a market disruption.

Following the attack, the value of Duo ETH (DETH), a derivative of ETH issued by the DeFi protocol Duo, dropped significantly. According to data from DexScreener, the price of DETH fell by more than 90%, from $2,000 to $100, before recovering to $1,000. This decline occurred after the attacker swapped the stolen DETH for ETH through a decentralized exchange.

On-chain analyst Ember CN reported that the attacker sold 14,079 DETH but only received 2,288 ETH due to insufficient liquidity in the DETH pool. The sale drained the liquidity pool and caused a sharp decoupling between DETH and WETH, contributing to the devaluation of the stolen assets.

The Connection to Angel Drainer Phishing Group

Blockchain security firm SlowMist linked the phishing attack to the Angel Drainer phishing group. This group is known for offering “draining-as-a-service” (DAAS) tools, which provide scammers with phishing resources like fake websites and social media accounts. These tools have been used in various phishing scams, including this latest attack.

In 2023, DAAS services were responsible for losses totaling $295 million, affecting over 324,000 victims. Scam Sniffer reported that phishing attacks caused approximately $126 million in losses during the third quarter of 2024 alone.

Duo Exchange, the platform associated with DETH, acknowledged the phishing attack today.

The platform confirmed that more than 10,000 DETH had been dumped on automated market makers (AMMs), depegging DETH’s value. Duo Exchange assured users that its protocols remained safe and functional despite the incident.

DeFillama data showed that the total value of assets locked on Duo Exchange dropped from $103 million to $86 million following the phishing incident.

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Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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