Another hacking attack has been added to the cryptocurrency market. Accordingly, the co-founder and CEO of Nest, a security-focused crypto wallet application, became the victim of a phishing attack while trying to claim what he thought was a legitimate airdrop event, resulting in the loss of 52 stETH tokens valued at $125,000.
Security Expert’s Costly Mistake
The LFG token airdrop event, which means less fees and gas, was initiated to reward Ethereum users who have spent more than $4,269 on transaction fees since 2016 and to include them in the Solana blockchain network. A fake website imitating the official LFG token emerged to steal users’ funds and succeeded in deceiving Bill Lou. Nest Wallet co-founder X commented on the matter:
“While trying to claim the LFG airdrop, my stEth assets worth $125,000 were stolen.”
Lou clicked on a link that redirected him to a scam website from an article at the top of a Google search and followed the link thinking he was reading an article guide for the airdrop and signing a message. The prominent figure said he used MetaMask instead of Nest and added that if he had used his own product, the wallet would have caught it:
“Transaction simulation is a must. This feature is available in Nest Wallet but completely missing in MetaMask. This could have been completely prevented.”
Lou also advised users to always look for official X accounts for links and to use multisig wallets for extra security.
Details on the LFG Airdrop Event
Apparently, Lou is not the only person affected by such an attack; other victims also reported that their wallets were emptied after clicking on similar fake links through fake X accounts. The project behind LFG acknowledged the issue and stated:
“We are aware of several scam accounts imitating us and are reporting them. Please do the same and help protect other users.”
According to the project, a total of 387,000 eligible wallets are entitled to receive a total of 400 billion LFG tokens, and any unclaimed tokens will be burned within a month. According to CoinGecko data, the token is currently valued at $0.000069. So far, about 25,000 users on Solana have claimed the LFG token. According to another X post, 60% of the total supply of 1 trillion LFG tokens is allocated for the airdrop event, 10% for early contributors, 6% for liquidity provision, and 24% for the treasury.
