Phishing Scammer Reawakens, Moves $2.7M After $55.4M DAI Heist

In a concerning development within the cryptocurrency world, a phishing address that previously stole $55.4 million in DAI has reawakened, triggering alarm across the crypto community. The address, flagged by the blockchain security firm PeckShieldAlert, has reportedly moved $2.7 million worth of digital assets to the crypto exchange eXch over the past two days. These assets include $1.145 million in DAI and approximately 708 ETH.

PeckShieldAlert made this announcement via their social media channels, drawing immediate attention to the ongoing activities of the scammer behind the notorious “Fake_Phishing442897” address. This address was first flagged after it drained a substantial amount of DAI from a whale’s account in a phishing attack just a few days earlier.

The transactions from this flagged address are particularly concerning. The scammer appears to be systematically dispersing the stolen funds to various unidentified wallets, making it increasingly difficult to trace and recover the assets. While many of these transfers involved relatively smaller amounts, such as 21 ETH, there were notable exceptions. Some transactions were significantly larger, with sums of 61 ETH and even 300 ETH being moved at once.

The quick and strategic movement of these funds suggests that the attacker is keen on making the recovery of the stolen assets as challenging as possible. Most of these suspicious transactions occurred on August 24, highlighting the urgency of the situation.

The Initial Phishing Attack

According to reports by Lookonchain, the initial phishing attack that led to this large-scale theft was reported on August 21, where the whale/vicitim, unknowingly signed a malicious transaction. This transaction granted the scammer full control over the whale’s DAI, amounting to a staggering 55.47 million.

After gaining access to the funds, the scammer quickly moved the stolen DAI into a new wallet and began converting it into Ethereum using decentralized trading protocols. By the time the scam was reported, the attacker had already managed to swap 27.5 million DAI for approximately 10,625 ETH, further complicating efforts to track and recover the funds.

A Growing Concern in 2024

Despite ongoing efforts to enhance security, the cryptocurrency sector remains highly vulnerable to such attacks. Approximately $319 million of the stolen assets were recovered during the first half of 2024, but the majority remains unaccounted for.

DeFi (decentralized finance) protocols, in particular, have been a primary target for hackers, making up 59% of the total value stolen in these incidents. Among the most affected cryptocurrencies, Ethereum, Bitcoin, and XRP have been at the forefront, with Ethereum and BNB Chain alone accounting for 31.3% of all hacks. Arbitrum, another blockchain network, also faced significant attacks, making up 12.5% of the total hacks.

The resurgence of activity from this phishing address is a chilling reminder of the persistent and evolving threats in the crypto space. As the situation unfolds, security firms and exchanges will need to stay vigilant to mitigate further losses and prevent similar incidents. 

For more news and updates on the cryptocurrency industry, stay tuned to DeyThere.