A phishing scammer has returned $9.3 million to a victim after stealing $24 million in a September 2023 attack. The return, first noticed by Scam Sniffer on July 13, was made through two separate transactions using the Dai (DAI) stablecoin.
On July 8, the scammer returned $5.23 million, followed by another $4.04 million on July 13, as per Etherscan data. This unexpected move comes ten months after the victim was scammed out of 9,579 Lido Staked Ether (stETH) and 4,850 Rocket Pool Ether (rETH) tokens on September 6, 2023.
The victim fell for a phishing scam that involved signing “Increase Allowance” transactions, a common trick that grants a third party permission to spend the victim’s tokens. According to Scam Sniffer’s report, malicious actors can exploit this allowance feature in ERC-20 tokens to drain wallets.
According to news reports, the recent return of $9.3 million, representing 38.4% of the funds at September 2023 prices, contrasts sharply with the more than $47.5 million value of the staked Ether tokens at current prices. The returned Dai was transferred through an address labelled as Railgun Relay, a privacy protocol intermediary, before reaching the victim.
In a message discovered on-chain, the hacker reached out to the victim on July 6, stating, “Hello, I am the guy who took your money. I want to give the money back.” Despite this gesture, the scammer’s wallet still holds over $3 million, primarily in Metagalaxy Land (MEGALAND) tokens on the BNB Chain.
Crypto Scam News: Understanding the Scale of Crypto Scams
Phishing scams have become a significant threat in the crypto space. In 2023 alone, phishing scams resulted in the theft of nearly $300 million from 324,000 victims, according to Scam Sniffer’s 2023 Wallet Drainers Report. Inferno Drainer and MS Drainer were the two most notorious phishing scammers of the year, stealing $81 million and $59 million, respectively.
Advertisement Banner
More recently, Pink Drainer emerged as a major phishing scammer in 2024, stealing over $85 million before shutting down in May. This incident highlights the ongoing risks associated with crypto scams and the need for enhanced security measures.
Phishing scams in the crypto world often target popular cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). These scams typically involve tricking victims into revealing their private keys or signing malicious transactions, enabling scammers to steal large amounts of digital assets.
Multiple sources have reported extensively on this crypto scam news, noting that it has become increasingly sophisticated and difficult to detect. The recent incident involving the return of $9.3 million in DAI underscores the unpredictable nature of these scams and the potential for unexpected outcomes.
Crypto Scam News: Protecting Yourself from Crypto Scams
To safeguard against crypto scams, it is crucial to be vigilant and adopt best practices for security. This includes using hardware wallets to store large amounts of cryptocurrency, enable two-factor authentication, and regularly review wallet permissions.
Additionally, educating oneself about common scam tactics, such as phishing and social engineering, can help in identifying and avoiding potential threats. It is also advisable to use trusted platforms and services for transactions and to double-check addresses and permissions before signing any transactions.
The return of $9.3 million by a phishing scammer to their victim is a rare and surprising event in the world of crypto scams. While it offers a glimmer of hope for victims, it also serves as a reminder of the importance of security and vigilance in crypto. As the industry continues to grow, so does the sophistication of scams, making it essential for users to stay informed and proactive in protecting their assets.
For more updates on crypto scam news and other related topics, stay tuned to The BIT Journal.
The price predictions and financial analysis presented on this website are for informational purposes only and do not constitute financial, investment, or trading advice. While we strive to provide accurate and up-to-date information, the volatile nature of cryptocurrency markets means that prices can fluctuate significantly and unpredictably.
You should conduct your own research and consult with a qualified financial advisor before making any investment decisions. The Bit Journal does not guarantee the accuracy, completeness, or reliability of any information provided in the price predictions, and we will not be held liable for any losses incurred as a result of relying on this information.
Investing in cryptocurrencies carries risks, including the risk of significant losses. Always invest responsibly and within your means.
