- A phishing fraud has apparently cost a MakerDAO governance delegate $11 million in aEthMKR and Pendle USDe tokens.
The problem happened a few hours ago when the user unintentionally signed multiple bogus Permit network signatures, according to Scam Sniffer, a web3 anti-scam tool. The scammer with address 0x73…bb96 gained access to the victim’s wallet, which is marked as 0xfb…accfa.
The compromise was swiftly discovered by Scam Sniffer, which offers protection against wallet drainers and phishing websites. The event was reported by the platform on X, and it was discovered that the victim had been tricked into signing several permit phishing signatures.
The victim’s address in the case was later revealed by crypto reporter Colin Wu to be that of a MakerDAO governance delegate, a critical position within the MakerDAO ecosystem.
Significant decisions within the Maker protocol are influenced by the votes cast by delegates on executive votes, governance polls, and governance proposals.
Proposals are often put to a vote by MKR holders and delegates to decide whether to move them from preliminary polls to final executive voting. Once they are accepted, they are incorporated into the Maker protocol through a waiting period called the governance security module (GSM).
How do phishing schemes work?
Phishing scams happen when fraudsters pose as trustworthy organizations in order to obtain your cryptocurrency wallet and steal confidential data.
Malware known as wallet drainers, which is frequently used in these scams, is placed on phishing websites with the intention of tricking victims into signing fraudulent transactions, which can result in large financial losses.
A Scam Sniffer report that was released earlier this year claims that in 2023 alone, phishing scams took $300 million from 320,000 individuals.
A single victim lost $24.05 million as a result of phishing signatures, including Permit, Permit 2, Approve, and Increase Allowance, in one of the most serious examples detailed in the Scam Sniffer report.
This episode highlights the weaknesses that even prominent members of the crypto community encounter.
The need for monitoring in the cryptocurrency ecosystem is highlighted by this concerning trend. To safeguard their assets from phishing attempts, users must confirm the legitimacy of any business they engage with and exercise caution when they see unusual activity.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
