A phishing attack has resulted in a painful loss for a crypto whale, who had 15,079 Few Wrapped Duo ETH, or fwDETH stolen, valued at approximately $35 million.
Phishing for big loot
The fwDETH is a wrapped version of Duo ETH, which is a derivative of Ethereum created by the Duo DeFi protocol on the Blast network.
The attack occurred when the whale unknowingly signed a fraudulent “permit” message, allowing the attacker to drain funds from their wallet address.
The anti-scam solution provider Scam Sniffer was the first to report this incident. Security firm PeckShield BlockSec confirmed the details of the attack.
Yajin ’Andy’ Zhou, co-founder of BlockSec, explained that the attacker tricked the victim into signing a permit message offline and then used that signed message to access and drain the fwDETH tokens from the victim’s account.
The loss isn’t just personal
This exploit not only caused the whale to lose a large amount of fwDETH but also led to a sharp drop in value for Duo ETH.
Following the attack, DETH’s price plummeted over 90%, dropping from $2,000 to $100 before partially recovering to around $1,000 at the time of the writing.
This incident highlights ongoing vulnerabilities in the crypto space, particularly in case of phishing attacks and fraudulent signatures.
As more people engage with digital currencies, it raises concerns about security and trust – or the lack of it – within the ecosystem.
Investor protection
Many experts warn that if these types of attacks continue to occur, they could lead to increased scrutiny and regulation in the crypto market.
Investors may become more cautious about where they store their assets and how they interact with DeFi protocols.
This situation also serves as a reminder of the importance of security measures and awareness for us.
