Whale Victim of Repeated Phishing Scam Loses Nearly $7 Million

Whale Victim of Repeated Phishing Scam Loses Nearly $7 Million
Photo by Lindsey LaMont / Unsplash

In a startling incident, a cryptocurrency whale, previously victimized by phishing in 2023, has once again faced substantial financial loss. This time, the loss amounts to nearly $7 million due to a sophisticated phishing attack. On-chain analysts have disclosed that an unknown user fell prey to a phishing scheme that allowed hackers to siphon approximately $6.91 million from his digital wallet.

The incident, which took place on May 26, 2024, involved hackers using a fraudulent authorization signature to gain access to the victim's crypto wallet. According to reports from Scam Sniffer, the victim lost 1,807 Ether.fi-Liquid1 (LQIDETHFIV1) in this latest attack. This platform has been pivotal in identifying and tracking down such fraudulent activities in the crypto space.

Cryptocurrency expert ZachXBT has confirmed the attack and criticized the victim for his negligent approach to asset security. He highlighted that the same user had suffered a phishing attack in 2023, where he lost $638,000. Despite this prior incident, it appears that the necessary precautions were not taken to safeguard his assets from further attacks.

In a detailed analysis, ZachXBT expressed that after such a significant loss last year, the trader should have been extremely cautious with all operations. The recurrence of such a high-value loss suggests a concerning level of oversight in digital security practices.

During discussions on social network X (formerly Twitter), some users speculated that the stolen funds might be linked to illegal gains, which could explain the trader's somewhat lax attitude towards safeguarding his assets. However, ZachXBT disagreed with these assumptions, indicating that there might be more to the situation than meets the eye.

Furthermore, it has been reported that Tether, the stablecoin issuer, has frozen $5.2 million USDT in accounts linked to this phishing fraud. In total, Tether has blocked 12 addresses associated with this scheme, suggesting that these accounts were used by hackers to launder the stolen funds.

This incident is a part of a disturbing trend in the crypto world, where significant amounts are lost due to phishing and other forms of cyber fraud. Earlier, it was reported that an investor lost $236,000 in cryptocurrencies due to a phishing attack. This series of events underscores the critical need for heightened security measures and vigilance in the cryptocurrency sector to prevent such sizable losses in the future.