April 19, 2024
Ethereum Staking Phishing Attack
Altcoins News

Massive Phishing Attack Depletes Cryptocurrency Whale’s Ethereum Holdings on Rocket Pool

A cryptocurrency whale recently fell victim to a substantial phishing attack, resulting in the loss of millions of dollars in staked Ethereum on the liquid staking provider Rocket Pool.

According to PeckShield, the cryptocurrency security firm, the investor lost their entire address balance of Lido Staked ETH (stETH) and Rocket Pool ETH (rETH) on September 6. This incident occurred swiftly, with 9,579 stETH and 4,851 rETH stolen in two separate transactions.

At the time of the attack, the total value of the stolen assets amounted to $15.5 million in stETH and $8.5 million in rETH, totaling a staggering $24 million. The perpetrator subsequently exchanged these assets for 13,785 ETH and 1.64 million Dai. Notably, a significant portion of the DAI assets have already been moved to the fully automatic cryptocurrency exchange FixedFloat, as reported by PeckShield. SlowMist’s crypto tracking team, MistTrack, also reported that most of the remaining stolen funds were transferred to three specific addresses.

According to anti-scam source Scam Sniffer, the victim unwittingly granted token approvals to the scammer by authorizing increase-allowance transactions. Allowances, or access permissions, are a feature of ERC-20 tokens that grant a third party the ability to spend some tokens belonging to a different owner via smart contracts. Some cryptocurrency observers have cautioned against the risks associated with approving ERC-20 allowances, highlighting the potential for anonymous developers to deploy malicious smart contracts to deceive users.

This incident follows closely after at least five Ethereum liquid staking providers, including Rocket Pool, StakeWise, Stader Labs, and Diva Staking, either implemented or began working on self-imposed limits. These limits aim to ensure that no single entity or provider owns more than 22% of the Ethereum staking market.

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