Crypto Whale Loses $24 Million in Phishing Attack on Rocket Pool

Crypto Whale Loses $24 Million in Phishing Attack on Rocket Pool

A cryptocurrency whale recently fell victim to a major phishing attack, leading to the loss of millions of dollars in staked Ether (ETH) on the liquid staking platform Rocket Pool. This incident occurred on September 6 when the investor lost their entire balance of Lido Staked ETH (stETH) and Rocket Pool ETH (rETH). The cryptocurrency security firm PeckShield reported this incident.

The hack was carried out in two transactions, with 9,579 stETH stolen in one and 4,851 rETH in another. At the time of the attack, the stolen amount was worth $15.5 million in stETH and $8.5 million in rETH, totaling a substantial $24 million.

Following the theft, the attacker exchanged the stolen assets for 13,785 ETH and 1.64 million Dai (DAI). A substantial portion of the stolen DAI has already been transferred to the fully automated cryptocurrency exchange FixedFloat, as reported by PeckShield.

SlowMist's cryptocurrency tracking team, MistTrack, noted that the majority of the remaining stolen funds were moved to three specific addresses. According to the anti-scam source Scam Sniffer, the victim inadvertently allowed the scammer to access their tokens by approving "Increase Allowance" transactions.

Access permissions or allowances are a functionality of ERC-20 tokens, which grant a third party the ability to utilize tokens owned by someone else through smart contracts. Certain cryptocurrency experts have cautioned against the potential hazards of granting ERC-20 allowances. They highlight that anonymous developers could employ deceitful smart contracts to deceive users.

This development follows closely on the heels of the decision by at least five Ethereum liquid staking providers — Rocket Pool, StakeWise, Stader Labs, and Diva Staking — to establish or begin working on implementing a self-imposed restriction. This limitation commits them to not possessing more than 22% of the Ethereum staking market.

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