Security breaches and fraud incidents in the cryptocurrency world are on the rise. Recent data reveals that a cryptocurrency whale lost $55.4 million worth of Dai stablecoin in a phishing attack. This significant loss has once again highlighted the increasing security issues in the sector.
Over 55 Million Dai Stolen in Attack
The attack, which occurred on Tuesday, was first noticed by on-chain detective ZachXBT. Following this, blockchain security company CertiK reported that the attackers used a phishing tool called “Inferno Drainer” to access the victim’s “Externally Owned Account” (EOA). The tool is known for tricking victims through fake websites or emails representing legitimate exchanges and DeFi protocols to steal users’ private information. Access NEWSLINKER to get the latest technology news.
CertiK identified that the attackers infiltrated the victim’s EOA, which controlled the Maker Vault, using the phishing tool. The Maker Vault is a system that allows users to borrow Dai stablecoin by depositing collateral. The attacker took over the victim’s Decentralized Service Proxy, or DSProxy. DSProxy is a smart contract that enables users to execute multiple contract calls in a single transaction.
After gaining control of the DSProxy, the attacker set their own wallet address as the owner of the Maker Vault and transferred 55,473,000 Dai stablecoin to this address.
DeFi Security Concerns Continue to Rise
The incident has raised concerns about the security of DeFi protocols. DeFi protocols remain at the center of attacks in the cryptocurrency world. Last month, a security breach in the decentralized exchange (DEX) aggregation and bridging protocol LI.FI resulted in a $10 million loss. According to Immunefi’s July report, the cryptocurrency sector has lost over $1.19 billion by 2024. The figures indicate that security breaches and fraud in the sector continue unabated.
Meanwhile, the spread of security and fraud incidents in the cryptocurrency world poses a serious risk for investors. All these events suggest that users need to be more cautious in protecting their cryptocurrencies and avoid clicking on links from illegitimate sources.
