Crypto Whale Loses Millions in Phishing Attack on Rocket Pool, Highlights Risks and Market Control Measures
Summary:
A cryptocurrency whale loses millions in a phishing attack on Rocket Pool, a liquid staking provider. The attacker stole $24 million worth of stETH and rETH, exchanging them for ETH and DAI tokens. The victim unknowingly enabled token approvals for the scammer, highlighting the risks associated with ERC-20 allowances. Additionally, Ethereum liquid staking providers are implementing self-limit rules to prevent excessive market control.
A cryptocurrency investor has suffered significant losses in a phishing attack, resulting in the loss of millions of dollars in staked Ethereum on Rocket Pool, a liquid staking provider. According to cybersecurity firm PeckShield, the attack saw the complete balance of Lido Staked ETH (stETH) and Rocket Pool ETH (rETH) stolen in just two transactions. The stolen assets amounted to $15.5 million in stETH and $8.5 million in rETH, totaling a staggering $24 million. The attacker later exchanged the stolen assets for 13,785 Ether (ETH) and 1.64 million Dai (DAI) tokens. A major portion of the DAI funds has already been moved to FixedFloat, an automatic cryptocurrency exchange. Further investigations have revealed the transfer of remaining stolen funds to three specific addresses. It is worth noting that the victim unwittingly enabled token approvals for the scammer by signing "Increase Allowance" transactions. This incident serves as a reminder of the risks associated with approving ERC-20 allowances, where anonymous developers may exploit malicious smart contracts to deceive users. In related news, several Ethereum liquid staking providers, including Rocket Pool, StakeWise, Stader Labs, and Diva Staking, have recently implemented or planned self-limit rules to prevent owning more than 22% of the Ethereum staking market.
Published At
9/7/2023 1:58:07 PM
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