$36 million whale loss, dETH crash and the FBI’s market manipulation operation

Cryptocurrencies are extremely dynamic industries where even small mistakes can have extremely negative consequences. This week’s crypto hack news brings three fairly significant events that highlight the sector’s weaknesses.

A whale that was overly enthusiastic about DeFi lost $36 million through phishing, causing dETH prices to crash. At the same time, an investor suffered a $6 million token theft, but EIGEN Layer claimed its protocol was secure and did not suffer such a loss. Ultimately, US authorities decided to charge those involved in manipulating markets and arrested 18 people and companies, including Gotbit Consulting.

Whale loses $36 million in phishing scam, causing dETH to decline

A whale was recently compromised and lost 15,079 fwDETH ($36 million) after adding a toxic signature to a phishing email. The hacker also transferred the stolen tokens almost instantly, causing a very sharp decline in the dETH market. The token, which is normally pegged 1:1 to ETH, fell over 90%, hitting a low of 0.06 ETH before returning to the 0.27 ETH area.

$6 Million Stolen in EIGEN Phishing Scam; No protocol error, says EIGEN Layer

An investor lost around $6 million worth of tokens in a phishing attack, OWN. The attacker changed the receipt to a fake address of his own. However, EIGEN Layer was able to assure that the reasons for the attack were not embedded in the platform’s on-chain and the investor’s email address was the only compromised account.

FBI Sting eliminates market manipulation with a rip-off

The US deputy attorney general has charged 18 people and crypto firms, including Gotbit Consulting, with fraud and market manipulation, with the FBI and SEC joining the Justice Department in arresting them and confiscating $2.4 million in cash and cryptocurrencies confiscate.

Authorities used a fake token, NexFundAI, to prove that the defendant was involved in a market manipulative vice of wash trading. This led to the arrest of several people and was the first time the DOJ conducted a criminal investigation into crypto market manipulation.

Caution for the user:

Signs and signatures should always be checked, as there are also fake ones, and to protect our assets, links must not lead to anything criminal. The crypto space has its dangers, but learning to recognize them will help you survive the next scam.