April 19, 2024
Phishing Attack Hits Nest Wallet CEO
Latest Cryptocurrency News

Crypto Wallet CEO Falls Victim to $125,000 Phishing Scam

The CEO of Nest, a crypto wallet app focusing on security, was tricked by a phishing scam while attempting to claim an airdrop, losing 52 stETH tokens valued at $125,000. The LFG token airdrop, standing for “less fees and gas,” was unveiled recently to reward Ethereum users who had spent over $4,269 on transaction fees since 2016, aiming to transition them to the Solana blockchain.

A counterfeit website resembling the official LFG token site emerged, siphoning funds from unsuspecting users, including high-profile individuals like Lou. “I just got scammed out of $125k of StEth while trying to claim the LFG airdrop,” revealed Bill Lou, co-founder of Nest Wallet, on X today.

Lou had clicked a link from a top Google search article that directed him to the fraudulent website. “I saw an article about the airdrop and followed the link to sign a message. I didn’t even question it,” explained Lou. He admitted to using MetaMask instead of Nest, citing a test version and bug fixes. He noted that his product would have flagged the scam.

“Transaction simulation is a must,” emphasized Lou. “Nest Wallet has this built-in, but MetaMask lacks it completely. This could have been completely avoided.” He advised users to rely on official X accounts for links and consider multi-signature wallets for added security. Other victims echoed similar experiences of losing funds after engaging with fake links through counterfeit X accounts.

In response, the LFG project addressed the issue: “We are aware of several scam accounts impersonating us and are reporting them. Please do the same and help protect your fellow users,” clarifying their official X account and website details.

The project plans to airdrop 400 billion LFG tokens to 387,000 qualifying wallets, with unclaimed tokens set to be burned in a month. The token’s current value stands at $0.000069, according to CoinGecko, with 25,000 users having claimed LFG tokens on Solana.

Blockaid, a web3 security provider collaborating with MetaMask, noted a rise in malicious drainer groups migrating to Solana due to its increasing popularity. They alerted users to protect their assets from imitation LFG token sites, cautioning that these fraudsters can deceive Solana wallets’ simulations, leading users to unwittingly approve malicious transactions.

Image by freepik

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