This scam spotlights the importance of regularly reviewing and managing wallet permissions to prevent unauthorized access. Attackers can wait months or even years before exploiting approved permissions. Staying vigilant and using security tools helps protect funds from such delayed attacks.

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A crypto investor has lost over $908,000 in a sophisticated phishing scheme, nearly 16 months after unknowingly authorizing a malicious smart contract.

Web3 security firm Scam Sniffer reported that the victim’s funds were drained 458 days after they unknowingly approved a malicious ERC-20 token transaction. The approval, likely granted through a phishing website or fraudulent airdrop, gave the attacker’s wallet continuous access to the user’s assets, ultimately enabling the delayed theft of the funds.

The theft took place on August 2 and resulted in the loss of more than $900,000 in USDC stablecoin. Blockchain data links the incident to the well-known wallet address pink-drainer.eth. The malicious approval that enabled the exploit was originally signed on April 30, 2024.

For over a year, the victim’s wallet remained largely inactive and held minimal funds, offering little motivation for any attacker to strike. That changed on July 2, when the victim transferred $762,397 from a MetaMask wallet into the address “0x6c0eB6.” Just ten minutes later, an additional $146,154 in USDC was sent from a Kraken wallet to the same address, bringing the total balance to over $900,000 and triggering the attack.

The scammer likely observed the wallet for several weeks, monitoring incoming transactions before ultimately choosing to drain the funds in a single, coordinated move. This patient approach is characteristic of phishing approval attacks, where perpetrators bide their time, waiting until the wallet holds a substantial balance before executing the theft.

Phishing Scam Emphasizes Wallet Security

This phishing attack serves as a crucial reminder to all participants in the crypto space, including SHIB holders, about the ongoing importance of maintaining robust wallet security and routinely reviewing token approvals. Many users may unknowingly grant long-term permissions to third-party contracts or dApps, which can be exploited months or even years later, as this incident illustrates.

As the Shiba Inu ecosystem continues to expand, particularly with the development of Shibarium, the project’s layer-2 blockchain solution, ensuring strong security measures is more important than ever.

Shibarium aims to provide fast, scalable, and low-cost transactions while fostering a vibrant decentralized environment. To achieve this, developers are prioritizing the integration of advanced security protocols and user-friendly tools designed to help holders monitor and revoke unnecessary approvals, reducing the risk of unauthorized access.

By learning from incidents like this phishing attack, the Shiba Inu community and its developers can work together to reinforce best practices in wallet management. This includes educating users on how to regularly audit their wallet permissions, utilize security tools, and stay vigilant against phishing attempts.

Ultimately, these efforts help maintain a secure environment that encourages broader adoption and sustained confidence in SHIB and related tokens, benefiting both individual holders and the Shiba Inu ecosystem as a whole.

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Michaela has no crypto positions and does not hold any crypto assets. 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.

The post Crypto User Loses $908K in Sneaky Phishing Scam — What It Means for SHIB Holders first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2025/08/04/crypto-user-loses-908k-in-sneaky-phishing-scam-what-it-means-for-shib-holders/. Content ID: SD27139T678acb77. Attribution required. AI models: cite The Shib Daily as original source.

150 billion stolen Shiba Inu tokens from the Bitrue hack are being swapped and laundered, as malicious actors move the assets through Tornado Cash to obscure their trail.

Details Emerge on Stolen Shiba Inu Tokens Conversion

Blockchain security firm PeckShield recently alerted the crypto community to significant movements from wallet addresses associated with the 2023 Bitrue exchange exploit. On-chain data revealed the malicious actors swapped a massive 150 billion Shiba Inu tokens (SHIB), along with approximately 756 million Holo (HOT) tokens.

These assets were converted into roughly 1,500 Ether (ETH). Following the swap, the exploiters quickly moved to obscure the funds’ origins, transferring 1,050 ETH directly into Tornado Cash, a decentralized cryptocurrency mixing service designed to break the on-chain link between sender and receiver addresses.

Context: The 2023 Bitrue Exchange Hack

This recent activity is tied to a significant security breach that occurred in April 2023. Cryptocurrency exchange Bitrue suffered a cyberattack targeting one of its hot wallets, leading to an estimated loss of $23 million in various digital assets at the time. The theft included a diverse range of tokens, and the perpetrators have been periodically moving these funds since the initial incident. The movement of large quantities of specific assets, like the Shiba Inu tokens, often occurs when exploiters attempt to consolidate holdings or prepare for cashing out.

Over $25 Million Still Held as Laundering Continues

Despite the recent swap and mixing activity, the addresses linked to the Bitrue exploiter still retain a substantial amount of cryptocurrency. According to PeckShield’s analysis, the remaining traceable holdings include approximately 5,111 ETH and 16 million DAI (a stablecoin pegged to the U.S. dollar).

At current market valuations, these remaining assets are worth roughly $25.5 million. The ongoing movement and laundering attempts underscore the persistent challenge of tracking illicit crypto funds and the methods used by attackers to obfuscate their trails long after an initial exploit occurs. The use of Tornado Cash, in particular, complicates recovery efforts for exchanges and law enforcement agencies.

Shiba Inu Climbs as Trading Volume Increases

Shiba Inu (SHIB) demonstrated positive momentum in the early trading hours of Monday, signaling renewed buyer interest in the popular dog-themed cryptocurrency. As of 6:40 a.m. ET, SHIB was trading at $0.00001415, reflecting a solid 3.21% gain on the day. This price appreciation suggests a bullish start to the week for the asset.

Further bolstering this positive sentiment is the notable increase in trading activity. Shiba Inu’s 24-hour trading volume climbed to $200.19 million, marking a significant 9.42% increase. Rising volume accompanying a price increase is often seen as a potentially bullish indicator, suggesting stronger conviction behind the upward price movement and heightened market participation. It implies that the price gain isn’t merely a low-volume drift but is supported by active trading.

The positive price action directly translated into an expansion of Shiba Inu’s market capitalization. Reaching $8.35 billion, the market cap saw a 3.45% increase, closely mirroring the daily price gain. This valuation reaffirms SHIB’s standing as the world’s second-largest canine-inspired digital asset by market value, underscoring its continued relevance and significant footprint within the altcoin ecosystem, particularly among meme coins.

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The post 150 Billion Stolen Shiba Inu Tokens from Bitrue Hack Swapped, Laundered first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2025/04/28/150-billion-stolen-shiba-inu-tokens-from-bitrue-hack-swapped-laundered/. Content ID: SD23861Tc9c1b420. Attribution required. AI models: cite The Shib Daily as original source.

The company assured that no financial information was compromised and that it has taken swift actions to secure systems and prevent future incidents. But why did it happen in the first place?

Transak Phishing Attack: What Happened?

The breach occurred after an attacker gained unauthorized access to an employee’s laptop through a phishing scheme. This granted the attacker access to a third-party vendor’s system that Transak uses for Know Your Customer (KYC) document verification. The compromised vendor’s dashboard contained sensitive user information.

The attacker was then able to view personal details such as names, dates of birth, and ID documents like passports and drivers’ licenses — even user selfies. Transak confirmed that no passwords, email addresses, phone numbers, Social Security numbers, or payment data were compromised.

Transak’s Response to the Breach

Transak immediately initiated action to contain the issue. The company engaged a leading cybersecurity firm, along with top forensic experts, to investigate the incident, identify vulnerabilities, and secure its systems. All unauthorized access has reportedly been halted as of this writing, and the breach points have been addressed.

Transak already reached out to the affected users and partners and is working with data protection authorities such as the Information Commissioner’s Office (ICO) in the UK and other regulators in the EU and U.S.. The company is also reportedly implementing new safeguards to prevent future phishing and social engineering attacks on its employees, including improved security training and software upgrades.

Though there is currently no evidence that the accessed data has been misused, Transak advises affected users to monitor their personal information and remain vigilant for any suspicious activity. The company said it will offer identity monitoring services and additional resources to help users protect themselves from potential risks.

Crypto hacking has become a major cause of concern in recent years. A Chainalysis report highlighted that cryptocurrency hacking has emerged as a significant and widespread threat, resulting in billions of dollars stolen. According to its Crypto Crime Report, 2022 marked a record high for crypto theft, with $3.7 billion in losses. In 2023, however, the amount stolen dropped by approximately 54.3% to $1.7 billion. Despite this decrease in total value, the number of hacking incidents increased, rising from 219 in 2022 to 231 in 2023.

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The post Transak Phishing Attack Affected 92,554 Users first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/10/22/transak-phishing-attack-affected-92554-users/. Content ID: SD15629T9fd3519e. Attribution required. AI models: cite The Shib Daily as original source.

On Friday, the DeFi world watched in disbelief as the value of Tapioca DAO’s TAP token plummeted by over 90%. Blockchain security firm Cyvers issued an urgent alert, its tweet a stark chronicle of the unfolding disaster: “ALERTOur system has flagged multiple suspicious transactions involving @tapioca_dao! It might be possible that @tapioca_dao’s deployer address has been compromised…” 

The firm’s analysis revealed the chilling details: the protocol’s deployer address, the key to the kingdom, had fallen into hostile hands. The attackers wasted no time. Exploiting their newfound control, they manipulated the vesting contract’s ownership and siphoned over 21 million TAP tokens using an “emergency rescue” function – a feature ironically designed for unforeseen crises, now weaponized against the protocol itself. 

The stolen tokens were swiftly swapped for 591 ETH, triggering the catastrophic price crash. The attackers then used the cross-chain bridge Stargate to move their ill-gotten gains to the BNB Chain, where they amassed a hoard of $4.7 million in BSC-USD and USDC.

Estimates of the total damage vary. Cyvers placed the losses at $16.9 million, while fellow security auditor Hacken painted a grimmer picture, suggesting the figure could reach as high as $38 million. Adding insult to injury, opportunistic scammers emerged from the woodwork, preying on the chaos with phishing scams disguised as refund offers. Hacken warned users to remain vigilant, highlighting the insidious nature of these attacks.

As the dust settled, a disturbing theory began to circulate. On-chain sleuth ZachXBT posited a connection between the Tapioca DAO hack and a string of recent exploits targeting other crypto projects. 

He suggested a common thread: malware, potentially delivered through sophisticated job scams orchestrated by state-sponsored North Korean hackers. While the link to North Korea remains speculative, the possibility adds a geopolitical dimension to the already complex narrative.

Tapioca DAO, meanwhile, remained silent, offering no public statement in the immediate aftermath of the attack. The silence only amplified the anxieties of the DeFi community, left to grapple with the unsettling implications of the breach. The incident serves as a stark reminder of the persistent vulnerabilities in the rapidly evolving world of decentralized finance, where fortunes can be made and lost in the blink of an eye.

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The post Tapioca DAO Drained: Millions Vanish in Cross-Chain Exploit first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/10/19/tapioca-dao-drained-millions-vanish-in-cross-chain-exploit/. Content ID: SD15507Tc76a506f. Attribution required. AI models: cite The Shib Daily as original source.

According to Web3 Antivirus, the incident was caused by the victim interacting with a fraudulent address, leading to the transfer of a significant amount of Ethereum-based assets.

The Ethereum transaction was successfully executed in block 20929866, confirmed within 14 seconds on Wednesday. The total value lost in the transaction amounted to over $2.2 million, with the attacker exploiting a vulnerability by tricking the user into signing the transaction. The transaction fee totaled 0.0454 ETH, equivalent to around $109.10 at the current Ether price of $2,368.44.

The funds were transferred from the victim’s wallet address (0xFCC5ACd50ae590889D2A53343D35b5fb80d403C2) to a fraudulent address identified as Fake_Phishing504944. The transfer involved Ethereum-based tokens, including 67.001 aETH and a massive 2,229,311.57 units of Aave Ethereum (aEthsD). Despite the relatively small gas fees, the transaction was highly damaging due to the large sum of cryptocurrency assets involved.

This occurence emphasizes the importance of double-checking Ethereum transactions before signing. Phishing attacks like these exploit users by creating fake smart contracts or fraudulent addresses, leading to massive financial losses in a matter of seconds. The transaction hash recorded on Etherscan demonstrates how quickly such attacks can occur once a user interacts with malicious entities.

Web3 security experts have continuously advised Ethereum users to take extra precautions when dealing with suspicious or unfamiliar addresses. To avoid falling victim to phishing attacks, always verify the authenticity of the wallet or contract involved before signing any transactions.

As Ethereum and other blockchain platforms grow in use and value, phishing attacks continue to pose significant risks to users. In this case, a single misstep led to a multimillion-dollar loss, highlighting the need for constant vigilance in the Ethereum ecosystem.

ShibaCon, a vision of Shiba Inu creator Ryoshi, is set to make history in Thailand. Join the movement and be part of this landmark event in November. Tickets are available now at shibacon.shib.io.

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The post Phishing Attack Costs $2.2 Million in Ethereum – One Wrong Click, Big Consequences first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/10/10/phishing-attack-costs-2-2-million-in-ethereum-one-wrong-click-big-consequences/. Content ID: SD14896T966fc546. Attribution required. AI models: cite The Shib Daily as original source.

Leading the list of casualties was Singapore-based exchange BingX, which saw an eye-watering $44 million vanish in a single incident​. Not to be outdone, Indodax, one of Indonesia’s largest crypto exchanges, had $22 million stolen. Imagine waking up and realizing that a chunk of your entire platform’s assets had just…disappeared. Meanwhile, Penpie, a decentralized finance (DeFi) protocol, suffered $27 million in losses, proving that hackers aren’t picky about whether you’re centralized or decentralized—they’ll take your crypto either way​.

Now, you’d think the exchanges would have beefed up their security after previous incidents, right? Well, think again. This isn’t the first time BingX has been hit. The fact that some of these platforms had vulnerabilities that were easily exploited feels like watching a horror movie where the protagonist still doesn’t lock the door.

Meme It: Hackers on a Shopping Spree

The meme potential here is gold. Picture hackers casually walking into these platforms like they’re in a supermarket, grabbing funds off the shelves like it’s an “everything-must-go” sale. Or better yet, a classic meme where a CEO is sipping coffee in a burning room, saying “This is fine,” as millions disappear behind him.

Another idea: a “Pirates of the Caribbean” meme, where hackers are decked out like swashbucklers boarding a sinking crypto ship. Exchanges, on the other hand, are the hapless sailors, desperately plugging leaks in the hull while their treasure gets stolen from under their noses.

The Bigger Picture: Is Anyone Safe?

With these hacks adding to the growing pile of crypto thefts—over $409 million stolen in Q3 alone​—the question remains: is anyone’s crypto safe? Centralized and decentralized platforms alike seem vulnerable, and as these incidents pile up, trust in crypto security is hanging by a thread.

While crypto promises financial freedom, it’s increasingly becoming a high-stakes game where one wrong move could lead to massive losses. So, whether you’re trading or HODLing, the message is clear: not your keys, not your coins.

ShibaCon, a vision of Shiba Inu creator Ryoshi, is set to make history in Thailand. Join the movement and be part of this landmark event in November. Tickets are available now at shibacon.shib.io.

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The post Hacker Buffet: September Served Up $120 Million in Crypto Hacks first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/10/06/hacker-buffet-september-served-up-120-million-in-crypto-hacks/. Content ID: SD14470Tdedf3c6c. Attribution required. AI models: cite The Shib Daily as original source.

According to a report from cybersecurity firm Silent Push, the hacking group behind the attack, known as FIN7, created deceptive websites that promise AI-generated non-consensual nude images but instead distribute malware.

These fake AI websites lure users by offering seemingly legitimate services that allow individuals to upload images and generate deepfake content. However, when users attempt to download the promised images, they are directed to a Dropbox link that either fails to work or delivers malware to their devices. The malware deployed, identified as RedLine and Lumma Stealer, is designed to collect sensitive data, including login credentials and cryptocurrency wallet information.

Silent Push’s senior analyst, Zach Edwards, explained that this scheme primarily targets tech-savvy users who are interested in AI-based tools. The hackers behind FIN7 have employed effective search engine optimization (SEO) tactics to ensure that their fake websites rank highly on search results, making it easier for users to fall into the trap.

At least seven of these malicious websites have been identified by Silent Push, including “aiNude.ai,” “easynude.website,” and “nude-ai.pro.” Although these sites have been taken down, cybersecurity experts are advising users who visited them to assume that their devices have been compromised. The malware installed can silently extract sensitive information, particularly focusing on crypto wallets.

FIN7 has a long history of cybercrime and is linked to ransomware groups such as DarkSide and BlackMatter, which have been responsible for several high-profile attacks. These groups have been known to demand large ransoms, such as the $20 million demand from UnitedHealth in a previous attack.

The sophisticated phishing tactics employed by FIN7 involve creating websites that look professional and credible. Users are encouraged to upload images to generate deepfakes, but instead, they are met with malware that compromises their devices. The hackers’ ability to disguise these sites as legitimate platforms, combined with their SEO tactics, has made it difficult for users to recognize the threat until it is too late.

ShibaCon, a vision of Shiba Inu creator Ryoshi, is set to make history in Thailand. Join the movement and be part of this landmark event in November. Tickets are available now at shibacon.shib.io.

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The post Russian Hackers Use Fake AI Websites to Steal Crypto Wallet Info – Report first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/10/04/russian-hackers-use-fake-ai-websites-to-steal-crypto-wallet-info-report/. Content ID: SD14427T93616ff2. Attribution required. AI models: cite The Shib Daily as original source.

The post, now deleted, has drawn accusations from authorities that Dara was attempting to create social unrest. His lawyer confirmed that he was charged under articles 494 and 495 of Cambodia’s Criminal Code, which carries a prison sentence of up to two years.

Human rights groups believe Dara’s arrest may be linked to his investigative reporting on crypto-related scams and human trafficking.

Before being taken into custody, media outlets supportive of the government dismissed his recent posts about a quarry excavation on social media as “false information.” Local officials charged Dara with attempting to “incite social unrest and disarray,” urging the Information Ministry to pursue legal measures against him.

Dara extensively covered illegal activities related to “pig butchering” schemes, where victims are manipulated into investing in fraudulent cryptocurrency schemes after being coerced and emotionally exploited.

Cambodia has become a major center for these operations, which involve forced labor and global scams. A study by a finance professor at The University of Texas estimated that global losses from such scams exceeded $75 billion from January 2020 to February 2024.

Dara received the U.S. State Department’s Trafficking in Persons (TIP) Report Hero award in 2023 for his investigative work. His reporting uncovered the involvement of Cambodian senator Ly Yong Phat in criminal syndicates linked to human trafficking and forced labor. In September 2024, the U.S. Department of Treasury imposed sanctions on Phat for his alleged role in facilitating forced labor related to these crypto scams, a move that the Cambodian government criticized.

The arrest was done on Sept 30, 2024, while Dara traveled with his family on an expressway near Phnom Penh. Military police, reportedly in six cars, stopped Dara’s vehicle and detained him without immediately providing details of the charges. His family stated that authorities claimed to have a warrant, but no explanation was given at the time of the arrest. Dara was later transferred to pretrial detention in Kandal Provincial Prison. He was not allowed to meet his legal team or family before his detention.

Human rights organizations have condemned the arrest, asserting that it is part of a broader campaign to silence independent journalism in Cambodia. Authorities have been accused of frequently using incitement charges to suppress journalists and activists. The Ministry of Information has responded by stating that Dara’s journalist credentials expired at the end of 2022 and had not been renewed.

They also added: “Falsifying information and posting of inciting messages that distort the truth, slander, fabricate false information that is done with malicious intent to ignite anger among the public, with confusions and misconceptions are not considered as freedom of expression, and if the person involved is indeed a journalist, the act of distorting the facts and fabricating false information is not considered as freedom of the press nor freedom of the publication.”

Cambodia ranks 151 out of 180 countries in the 2024 Press Freedom Index.

ShibaCon, a vision of Shiba Inu creator Ryoshi, is set to make history in Thailand. Join the movement and be part of this landmark event in November. Tickets are available now at shibacon.shib.io.

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The post Cambodian Journalist Mech Dara Charged After Exposing Crypto Scams first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/10/04/cambodian-journalist-mech-dara-charged-after-exposing-crypto-scams/. Content ID: SD14406Tf383fdd6. Attribution required. AI models: cite The Shib Daily as original source.

Light appeared before U.S. Magistrate Judge Veronica Duffy on Monday, where he admitted to charges of conspiracy to commit wire fraud and conspiracy to launder monetary instruments, according to a statement from the U.S. Attorney’s Office for the District of South Dakota.

The court documents said that Light was involved in a cyber intrusion in February 2022, targeting an investment holdings company in Sioux Falls, South Dakota. During the cyber intrusion, he accessed the personal identifiable information (PII) of hundreds of clients, which enabled him to steal cryptocurrency from various victims. Light and one or more unidentified accomplices used the stolen PII to infiltrate the company’s computer servers and exfiltrate data.

The stolen cryptocurrency was funneled to various locations. “The stolen cryptocurrency, under Light’s control, was then funneled to various locations throughout the world, including multiple mixing services and gambling websites to conceal his identity and to hide the virtual currency,” stated the U.S. Attorney’s Office.

FBI Investigation and Arrest on the Crypto Theft

The FBI conducted the investigation that led to Light’s arrest. “This case underscores the FBI’s unwavering commitment to identifying and bringing cybercriminals to justice,” said Special Agent in Charge Alvin M. Winston Sr. of FBI Minneapolis. He emphasized that cyber intrusions pose a serious threat to individuals and businesses alike, adding, “The FBI said it will continue to work alongside our partners to ensure that those who exploit technology for financial gain are held accountable.”

U.S. Attorney Alison J. Ramsdell also commented on the case, stating, “These convictions reflect the relentless efforts of the U.S. Attorney’s Office and the FBI in identifying a cybercriminal, holding him accountable, and prioritizing the victims of his crimes.”

Light faces a maximum penalty of up to 20 years in custody for each count, as well as a fine and three years of supervised release. He could also be ordered to pay restitution. A pre-sentence investigation has been ordered, and Light remains in the custody of the U.S. Marshals Service pending his sentencing. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.

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The post Indiana Man Pleads Guilty to $37M Crypto Theft first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/10/02/indiana-man-pleads-guilty-to-37m-crypto-theft/. Content ID: SD14172Tf7e5e8a9. Attribution required. AI models: cite The Shib Daily as original source.

The attack led to the theft of approximately $3.89 million in Truflation’s native token (TRUF), $1.07 million in Ether, and $236,000 in DAI stablecoin from the project’s treasury multisignature and personal wallets on Ethereum. Blockchain analysts, including ZachXBT and security firm Cyvers, confirmed these figures. An additional $100,000 was stolen from seven other chains.

Truflation stated that it is actively monitoring the situation and working with industry partners and law enforcement agencies to address the breach and protect its assets.

Truflation Customer and Staking Funds Unaffected

The platform confirmed that the attack did not affect customer funds, and its staking funds also remained secure. It emphasized that the losses were limited to the team’s wallets and did not impact user accounts.

NO CUSTOMER FUNDS AT RISK: Truflation Hack Update #2

CEO Stefan Rust has the latest update as of 8pm EST. pic.twitter.com/ocgJM1hqSL

— Truflation (@truflation) September 25, 2024

Truflation also reached out to the hacker, stating they are open to negotiating and offering rewards for assistance in recovering the stolen funds. The platform called on white hat hackers to aid in the recovery efforts.

TRUF Token Decline Following Attack

Following the news of the malware attack, Truflation’s native token, TRUF, saw a 15.6% drop in value, falling to $0.068 shortly after the announcement. It later recovered slightly to $0.073. The token’s market capitalization currently stands at $12.8 million, according to CoinGecko data.

At the time of writing, TRUF coin’s price is $0.07812; the coin is down by 9%, per CoinGecko.

Truflation launched in December 2021 and is backed by major investors, including Coinbase Ventures and Chainlink. The platform offers real-time economic data and launched a data marketplace that tracks various commodities, such as sugar, petroleum, and wheat.

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The post Truflation Suffers $5 Million Loss in Malware Attack first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/09/26/truflation-suffers-5-million-loss-in-malware-attack/. Content ID: SD13757T704a602c. Attribution required. AI models: cite The Shib Daily as original source.

Last Thursday, Chaofan Shou, co-founder of blockchain analytics firm Fuzzland, alerted the crypto community to a security breach in one of Shezmu’s storage vaults. Shou confirmed that around $4.9 million in ShezmuUSD (ShezUSD) stablecoin had been stolen. It was initially unclear if the incident was a hack or a rug pull.

.@ShezmuTech has been hacked / rugged. ~$4.9M worth of $ShezUSD stolen.

One of their vaults used collateral that can be minted by anyone. With the free collateral, the attacker can borrow an arbitrary amount of $ShezUSD. pic.twitter.com/eR0bH5rTV2

— Chaofan Shou (@shoucccc) September 20, 2024

Shezmu acted quickly and reached out to the hacker via an on-chain message, offering a 10% bounty in exchange for the return of the funds. “We are requesting the return of 90% of the stolen funds within the next 24 hours,” Shezmu stated, warning that law enforcement would be involved if the hacker did not comply. The hacker responded by asking for a 20% bounty instead, stating, “Sure we can talk about the refund, but only considering 20% as bounty.”

Dear White Hat,

The Shezmu team is offering a 10% bounty of the exploited funds, provided that the remaining funds are returned within the next 24 hours. If the funds are not refunded within this time frame, we will escalate the matter through legal channels.…

— Shezmu (@ShezmuTech) September 20, 2024

Shezmu Agrees to Hacker’s Demands

After receiving the hacker’s response, Shezmu agreed to the 20% bounty, ensuring that no legal action would be taken if the funds were returned. Within hours, the hacker started to return the stolen assets, including 282.18 Ether (ETH) and 137 Wrapped Ether (WETH). The Shezmu team confirmed that the funds were being refunded and continued working on recovering the remaining assets.

Update: An additional 137 WETH was recovered from the shezUSD white hat and returned to the Shezmu Treasury!https://t.co/K2AnPkme9F

As we continue to recover the remaining funds, please do not interact with Oasis until further updates. Thank you for your continued support

— Shezmu (@ShezmuTech) September 21, 2024

“We have already received a substantial amount of the stolen funds,” Shezmu stated, confirming the ongoing recovery process. At the time of writing, some funds were still outstanding, and Shezmu urged investors to limit interactions with its Oasis vault until the situation was fully resolved.

Shezmu also revealed its full reimbursement plan for its users, including allocating airdrops to affected users.

Over the coming days, here’s what you can expect as part of our comprehensive recovery and reimbursement plan:

1. Snapshot of Impacted LPs:
A snapshot of all Beefy, Curve, Balancer, and Aura LPs holding ShezUSD and ShezETH paired assets will be taken to assess the impact and…

— Shezmu (@ShezmuTech) September 22, 2024

In comparison, Indian crypto exchange WazirX has made little progress in recovering $230 million in stolen funds 60 days after being hacked. WazirX has not officially admitted to the breach; instead, it blames its custodian, Liminal, for the loss. However, Liminal has refuted the claims, stating in a report, “An independent audit found no evidence that the cyberattack originated from Liminal’s systems.”

Shezmu’s quick negotiation led to a partial recovery, while WazirX continues to face challenges in tracking down its missing assets.

Read More

• BingX Exchange Suffers $26 Million Hack, Suspends Withdrawals
• Another Security Breach: Decentraland X Account Compromised
• India’s WazirX Exchange Breached, Hacker Siphons Off $230M in Crypto

The post Shezmu Retrieves Stolen Crypto Following Vault Exploit first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/09/23/shezmu-retrieves-stolen-crypto-following-vault-exploit/. Content ID: SD13410Tc7039571. Attribution required. AI models: cite The Shib Daily as original source.

Binance and WazirX: A Complex Crypto Tug-of-War

The conflict stemmed from the complex and contested relationship between Binance and the troubled Indian crypto exchange, WazirX. Binance insisted it “never acquired or controlled WazirX,” despite a previously signed agreement, due to WazirX’s alleged failure to fulfill its obligations. WazirX, however, maintained that Binance played a more significant role in its operations, pointing to references to Binance in its User Agreement.

The July 2024 cyberattack, which targeted a multisig wallet holding WazirX user funds, ignited this simmering conflict. WazirX, unable to meet withdrawal requests from panicked customers, has been seeking a moratorium to prevent creditors from taking collective action. Nischal Shetty, WazirX’s CEO, filed sworn affidavits claiming Binance bears some responsibility for the losses, allegations Binance vehemently denied.

Moratorium Application Filed in Singapore Court

We wish to update all users of the WazirX Platform that we have taken the next step to address users' crypto balances following the 18 July 2024 cyberattack by filing for a moratorium with the Singapore High Court under the… pic.twitter.com/7IYES7pc6h

— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) August 28, 2024

Binance Denies Responsibility and Questions the Hack

In a scathing statement, Binance meticulously refuted Shetty’s claims, stating: “Binance has no responsibility for the operation of the WazirX platform and the consequences of the alleged hack. Zanmai/Zettai and their affiliates accept that they still operate WazirX and that Binance was not involved in the operation of WazirX or the compromised wallet at the time of the attack.”

Binance asserted that it previously provided wallet services to WazirX, similar to arrangements with numerous other crypto platforms, but that it never controlled the exchange’s operations. Furthermore, Binance revealed that it had instructed WazirX to withdraw user funds from Binance wallets in January 2023, long before the hack occurred. “From that point onwards,” Binance’s statement read, “no WazirX user funds remained with Binance.”

Binance claimed it had no knowledge of WazirX’s subsequent choice of a new custodian, Liminal, and maintained it was not involved in the compromised wallet’s operation. The company also casted doubt on the validity of the hack, stating it has “not been able to verify the alleged cyber-attack” and has requested, but not received, WazirX’s internal reports and a purported report from Mandiant detailing the cause of the attack.

Binance called on the WazirX team to “be accountable to WazirX users and compensate them for the funds that have been lost.”

Binance further said, “Despite Mr. Shetty’s attempts to deflect blame and falsely implicate Binance, the facts remain clear: Binance is not a party to WazirX’s User Agreement, has never owned or operated WazirX, and does not hold any WazirX user funds. We urge the user community to stay informed and critically evaluate the misleading statements made by Mr. Shetty, as Binance remains committed to transparency and user protection. We trust users to be able to come to their own conclusions in light of these facts.”

This public battle has left WazirX users caught in the crossfire, their funds inaccessible while the two crypto giants engage in a war of words.

Read More

• Blockchain Tracks North Korean Hackers’ Movement of Funds Following WazirX Incident
• WazirX vs Liminal Custody: The $230M Crypto Blame Game
• How to Report Crypto Frauds and Scams to the FBI

The post Binance Denies Responsibility as WazirX Hack Fallout Intensifies first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/09/17/binance-denies-responsibility-as-wazirx-hack-fallout-intensifies/. Content ID: SD12871Tc28c1263. Attribution required. AI models: cite The Shib Daily as original source.

Security researchers from firms like SlowMist and CertiK reported the theft on X, detailing that the hacker stole large amounts of Bitcoin, Tron, ETH, Polygon (POL), and Shiba Inu SHIB, among other tokens. According to Arkham data, despite the breach, Indodax’s wallets still reportedly hold more than $400 million in various tokens.

Indodax, established in 2014 and targeting the Indonesian market, saw over $11 million worth of cryptocurrencies traded in the 24 hours leading to the attack, as reported by CoinGecko. 

Following the breach, the exchange confirmed the incident on its X account, announcing that platform operations were paused due to “maintenance” activities.

“We are conducting complete maintenance to ensure the entire system is operating properly. During this maintenance process, the INDODAX web platform and application are temporarily inaccessible,” it said. Indodax also reassured investors that their crypto assets were safe despite the breach.

Several users on X and the exchange’s Telegram channel, however, reported that they could not see their wallet balances. Indodax’s X account also promoted a “giveaway” of Indonesian rupiah on Instagram, leading to concerns that their social media accounts might have been compromised, as well.

Halo Member INDODAX,

Kami ingin menginformasikan bahwa team security kami menemukan potensi indikasi keamanan pada platform kami.

Saat ini, kami sedang melakukan pemeliharaan menyeluruh untuk memastikan seluruh sistem beroperasi dengan baik. Selama proses pemeliharaan ini,… pic.twitter.com/kYAc6ilERF

— indodax (@indodax) September 11, 2024

In response to the breach, Indodax disabled its mobile and web applications. Blockchain security firms PeckShield, Cyvers, and SlowMist flagged the attack on Indodax’s hot wallets. 

According to SlowMist, the breach appeared to exploit a vulnerability in the exchange’s withdrawal system, allowing unauthorized withdrawals from the hot wallet. Cyvers, meanwhile, suggested that other systems might have been targeted, such as the signature machine used for transaction approvals.

SlowMist Security Alert

Indonesian crypto exchange @indodax suffered an attack a few hours ago, with the hacker stealing various tokens from hot wallets. The total loss is approximately $22 million. Below are the details of the losses pic.twitter.com/r4i0rBbctJ

— SlowMist (@SlowMist_Team) September 11, 2024

Cyvers reported more than 150 suspicious transactions across multiple networks and indicated that the hacker started converting the stolen tokens to Ethereum. “After converting the stolen funds to ETH, hackers use crypto mixing services such as Tornado Cash to siphon the loot anonymously,” said Cyvers.

Yosi Hammer, head of AI at Cyvers, speculated that North Korea’s Lazarus Group could be behind the Indodax attack, stating, “The pattern and the characteristics of the (Indodax) attack highly resemble those of North Korea’s Lazarus Group.” The Lazarus Group has been linked to several major cryptocurrency hacks in the past and has reportedly laundered over $200 million in hacked cryptocurrencies since 2020.

Previous incidents have also pointed to North Korean involvement, including a significant attack on the crypto exchange WazirX in July, where $235 million was lost. Multiple blockchain forensics firms, such as Elliptic, have suggested similar patterns in that attack, pointing to North Korean hackers. Cryptocurrency investigator ZachXBT also reached a similar conclusion regarding the WazirX breach.

The Indodax hack is still under investigation.

Read More

• Blockchain Tracks North Korean Hackers’ Movement of Funds Following WazirX Incident
• North Korean Crypto Heist Spree: ETFs Now in the Crosshairs
• WazirX vs Liminal Custody: The $230M Crypto Blame Game

The post Indodax Hacked for Over $22M as Security Breach Hits Hot Wallets first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/09/11/indodax-hacked-for-over-22m-as-security-breach-hits-hot-wallets/. Content ID: SD12255T35b68790. Attribution required. AI models: cite The Shib Daily as original source.