A victim of a sophisticated crypto phishing scam has had their stolen crypto returned after a white hat hacker recovered over $16,000 worth of stolen Ethereum (ETH) and Decentr (DEC).
The hacker intercepted the funds after managing to penetrate the database of a crypto phishing scam. And unlike some 350 people that fell victim to the recent Twitter hack and Bitcoin scam, this time, the funds were reunited with their owner. And it's not the first time he has helped people to avoid crypto scams either.
Twitter saw a hack on an unprecedented scale on Wednesday when scammers targeted multiple high-profile accounts, sending a volley of tweets extorting Bitcoin from the 346 million followers of Barack Obama, Apple, Uber, Joe Biden, Elon Musk, and 20 others.
The tweets promised users that the account holders would double the donations they sent to the Bitcoin addresses provided—a classic scam. The hackers walked away with around $120,000, but, more importantly, they left some key lessons for social...
Earlier this month, Harry Denley, director of security at blockchain analytics firm, MyCrypto, stumbled across a particularly sophisticated variant of a phishing scam. The method lulls victims in with phony user interfaces (UI) that imitate popular decentralized finance (DeFi) protocols—in this instance, Uniswap, an ETH-based token exchange, explains Denley in a blog post.
The burgeoning decentralized finance (DeFi) ecosystem aims to use decentralized, non-custodial financial products to replace centralized middlemen in financial applications such as loans, insurance and derivatives.
Uniswap is an example of one of the core products in the DeFi ecosystem, the decentralized crypto exchange, or DEX. DEXs aim to solve many of the problems of their centralized counterparts, including the risk of hacking, mismanagement, and arbitrary fees. However, decentralized exchan...
Once hooked, the scam prompts victims into revealing a host of information they really shouldn't divulge, including private keys, a secret alphanumeric password that provides access to stashed crypto funds. The bogus UI then redirects victims to the actual protocol—in an apparent effort to avoid suspicion.
Fortunately for one victim, Denley was on hand to foil the fraudster's plans. And favorably for Denley, the scammer's database security was lax, allowing him to receive the phished details and eventually recover the funds.
Further analysis of the database revealed other malicious UI's masquerading as domain names, such as XMR-wallet.com—a web wallet for the privacy coin Monero—as well as a host of other Uniswap directories.
On June 10, podcast host Eric Savics was stripped of his Bitcoin life savings after downloading a malicious KeepKey wallet extension from the Google Chrome Store.
But the presence of these scam apps can’t have come as a surprise to Google. A month prior, crypto enthusiast Scott Davis reported a bogus KeepKey wallet that looked identical to the one Savics downloaded.
KeepKey is a Bitcoin wallet focused on security. Image: KeepKey.
"I have a Keepkey hardware wallet, and I installed that fake app...
Tracing the victim's funds back to a Binance.com address, Denley reached out to a contact within the exchange, confirmed the victim, and transferred the funds back to their rightful owner.
Denley is no stranger to tackling crypto fraudsters. In May, he flagged eight phishing scams masquerading as legitimate crypto wallets on the Google Chrome store. Despite Denley's best efforts, Bitcoin podcast host Eric Savic fell foul of one of the scams, losing his entire crypto fortune. Not even Denley could recover it now.
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Wyoming Governor Mark Gordon distanced himself Wednesday from a failed effort by legislators in his state to establish a Bitcoin reserve, emphasizing he’s focused on more practical crypto initiatives.
“Wyoming has been pretty methodical in how we approach this,” Gordon told Decrypt at the DC Blockchain Summit. “Bitcoin has been incredibly volatile.”
“It’s been a bit of a learning curve,” he added, regarding legislators’ approach to bold initiatives like the Bitcoin reserve.
Back in January, Wyom...
The state of Wyoming is gearing up to launch its long-planned stablecoin in the coming months, Governor Mark Gordon said at the DC Blockchain Summit on Wednesday, with the state eyeing a potential July debut following a period of testing.
The stablecoin, which was first proposed via a state bill in February 2022, will be powered by LayerZero and be usable across multiple chains, including Ethereum, Solana, Avalanche, and the Ethereum scaling networks Base, Polygon, Arbitrum, and Optimism.
“We ar...
Crypto-based prediction marketplace Polymarket apologized on its Discord server for what it described as an “unprecedented situation,” after users flagged apparent manipulation of market results by UMA whales.
UMA is Polymarket’s oracle system whereby the results of betting markets are determined by recourse to external sources of data, and by staking UMA tokens behind a particular resolution. For example, if there were a market that allowed users to predict whether the sun would rise tomorrow,...