Sleepdropping scam costs Ethereum users $11.5 million

TL;DR Breakdown

  • Cybersecurity firms Forta Network and Blockfence reveal a sleepdropping scam costing Ethereum users $11.5 million since December 2022.
  • Fraudulent ERC-1155 tokens, disguised as legitimate NFTs, serve as the primary tool for the scam, impacting over 500,000 addresses.
  • Scammers employ a fake Lido NFT token as bait, leading victims into secondary interactions where the actual financial harm occurs.

Description

Cybersecurity firms Forta Network and Blockfence have disclosed how a sophisticated scam, coined “sleepdropping,” has cost Ethereum users $11.5 million since its first detection in December 2022. The insidious operation centers on ERC-1155 tokens, often disguised as legitimate NFTs. Alarmingly, these fraudulent airdrops have reached over 500,000 addresses. The tactics deployed by the scammers expose … Read more

Cybersecurity firms Forta Network and Blockfence have disclosed how a sophisticated scam, coined “sleepdropping,” has cost Ethereum users $11.5 million since its first detection in December 2022. The insidious operation centers on ERC-1155 tokens, often disguised as legitimate NFTs. Alarmingly, these fraudulent airdrops have reached over 500,000 addresses. The tactics deployed by the scammers expose the Achilles’ heel of smart contracts, even as they continue to gain mainstream acceptance.

A critical facet of this scam is the fraudulent website that deceives users into engaging in risky financial transactions. On the surface, these websites are legitimate platforms. However, once users engage with these sites, their funds end up in the pockets of unknown fraudsters. Over 20,000 users have already fallen prey to this intricate scam.

Interestingly, the scammers have even replicated a genuine Lido NFT token as a “badge” for a supposed airdrop, extending the web of deceit. While the NFT itself poses no direct risk to the user’s financial assets, the real danger lies in the secondary interactions it encourages. Users who believe the airdrop is genuine may claim harmful tokens on phishing sites. The scam transforms a harmless token into a lure that pulls users into a financial trap.

What complicates the matter further is the seemingly authentic nature of the smart contracts used to disseminate these tokens. In some instances, these contracts mimicked legitimate airdrops from reputable sources, such as those that rewarded early Lido stakers in 2021. According to Forta Network, an observant user might even see the tokens coming from a legitimate source, highlighting the depths these scammers are willing to feign authenticity.

The research conducted by Forta and Blockfence has identified more than a hundred unique smart contracts connected to this scam. These contracts share similar deployment characteristics, providing clues to the scam’s modus operandi. The scam unfolds in three main stages, which are as follows: fraudulent airdrop operations, deceptive websites, and malicious contracts that ultimately siphon off users’ funds.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

文章来源于互联网:Sleepdropping scam costs Ethereum users $11.5 million

Disclaimers:

1. You are solely responsible for your investment decisions and this info is not liable for any losses you may incur.

2. The copyright of this article belongs to the writer, it represents the writer's opinions only, not represents the site's ones. Not financial advice.

Previous 2023年9月16日 07:06
Next 2023年9月16日 10:29

Related articles

  • Core Scientific’s chapter 11 plan paving the way for Bitcoin mining titan’s resurgence

    TL;DR Breakdown The Chapter 11 plan was submitted to the Houston Division of the Southern District of Texas Bankruptcy Court. With this strategy, Core Scientific has communicated its vision for the future of the business and its goal to reach a mutual understanding with all significant stakeholders. According to the bankruptcy plan, creditors who have valid claims against the debtor-in-possession will be paid in full. The Chapter 11 bankruptcy plan, at its core, provides a roadmap for how the business intends to restructure and pay off its debts. Description Core Scientific, a Bitcoin mining company facing serious difficulties due to the current bankruptcy procedures, has taken a decisive step to ensure its long-term viability. The company has recently filed for Chapter 11 bankruptcy protection in order to demonstrate its commitment to reorganizing its business and pleasing its creditors. The Chapter 11 plan was submitted … Read more Core Scientific, a Bitcoin mining company facing serious difficulties due to the current bankruptcy procedures, has taken a decisive step to ensure its long-term viability. The company has recently filed for Chapter 11…

    Article 2023年6月24日
  • The dangerous consequences of China’s absence at G20

    TL;DR Breakdown China’s President Xi Jinping chooses not to attend the upcoming G20 summit in India. The move can be seen as a strategic sidestep or a snub, causing ripples in global diplomacy. Historically, the country has never missed a G20 summit, making this absence significant. Description China’s unexpected decision to sidestep the upcoming G20 summit in India sets off alarms for geopolitical pundits. Is this merely a snub or a deeper indicator of Beijing’s waning interest in global economic cooperation? Rising Tensions and Uncertainty in the Global Arena When Western officials learned that President Xi Jinping wouldn’t grace the G20 summit … Read more China’s unexpected decision to sidestep the upcoming G20 summit in India sets off alarms for geopolitical pundits. Is this merely a snub or a deeper indicator of Beijing’s waning interest in global economic cooperation? Rising Tensions and Uncertainty in the Global Arena When Western officials learned that President Xi Jinping wouldn’t grace the G20 summit with his presence, it felt like the culmination of a year’s worth of resistance from China. Instead, they’ll be dealing…

    Article 2023年9月2日
  • Bybit obtains crypto exchange license in Cyprus

    TL;DR Breakdown Bybit secures license in Cyprus, expanding global presence and becoming a trusted platform in the Cyprus cryptocurrency market. Cyprus emerges as a thriving hub for crypto activities, attracting companies with favorable regulations and anticipation of the upcoming EU-wide framework. Bybit strategically positions itself amidst regulatory consolidation, demonstrating a commitment to compliance and security in the industry. Description Dubai-based crypto exchange Bybit has achieved a significant milestone by obtaining a license to operate a crypto exchange and offer custody services in Cyprus. This move comes after Bybit faced challenges in Japan and exited the Canadian and U.K. markets. Bybit’s commitment to regulatory compliance and dedication to robust frameworks have been key factors in … Read more Dubai-based crypto exchange Bybit has achieved a significant milestone by obtaining a license to operate a crypto exchange and offer custody services in Cyprus. This move comes after Bybit faced challenges in Japan and exited the Canadian and U.K. markets. Bybit’s commitment to regulatory compliance and dedication to robust frameworks have been key factors in this achievement. In a press release, the company’s…

    Article 2023年6月29日
  • Singapore High Court recognizes crypto as property in landmark ByBit case

    TL;DR Breakdown   The Singapore High Court has declared cryptocurrency personal property, equating it with fiat money. This groundbreaking verdict stems from a case involving Ms. Ho Kai Xin, a former ByBit employee, who allegedly transferred $4.2 million USDT to her accounts. The ruling was noteworthy not for the monetary amount involved but for recognizing cryptocurrencies as property, despite their intangible nature. Description In an unprecedented turn of events, the High Court of Singapore has issued a landmark decision. They’ve declared cryptocurrency as personal property. Significantly, this includes fiat money, underscoring the rapid digital revolution. The catalyst for this groundbreaking verdict was a case involving Ms. Ho Kai Xin. Formerly employed at ByBit, a cryptocurrency exchange, she found … Read more In an unprecedented turn of events, the High Court of Singapore has issued a landmark decision. They’ve declared cryptocurrency as personal property. Significantly, this includes fiat money, underscoring the rapid digital revolution. The catalyst for this groundbreaking verdict was a case involving Ms. Ho Kai Xin. Formerly employed at ByBit, a cryptocurrency exchange, she found herself at the heart…

    Article 2023年7月27日
  • What happened to crypto AI tokens?

    TL;DR Breakdown Kaiko, under analyst Dessislava Ianeva, reports that AI tokens such as FET, GRT, RNDR, OCEAN, and ROSE fell from $170M earlier in 2023 to just $60M in August. The reason for the decline among AI tokens is due to a shift in global risk appetite, as seen with Sam Altman’s Worldcoin. Weekly trade volumes for AI tokens jumped to $870 million in August after plunging to yearly lows of $570 million in late July. Description Crypto AI tokens are digital assets that use blockchain and artificial intelligence technology. The tokens generated hype in 2022 after the launch of Image generators and the AI Chatbox, ChatGPT, which attracted a debate.  The integration of both technologies seemed promising; however, according to Kaiko, despite the billions channeled to AI startups, the interest in … Read more Crypto AI tokens are digital assets that use blockchain and artificial intelligence technology. The tokens generated hype in 2022 after the launch of Image generators and the AI Chatbox, ChatGPT, which attracted a debate.  The integration of both technologies seemed promising; however, according to Kaiko,…

    Article 2023年9月8日
TOP