Phishing Scam Targets Crypto Whale, Draining $35M in fwDETH Tokens

Leading Blockchain security firm Scam Sniffer noted that the crypto whale address lost over 15,000 fwDETH tokens, worth nearly $35 million, in the phishing attack.

A crypto whale has lost a staggering $35 million in a phishing scam, dealing a severe blow to the stability of the decentralized finance (DeFi) market.

Blockchain security firm Scam Sniffer flagged the incident, revealing that the crypto whale address in question lost over 15,000 fwDETH tokens, valued at nearly $35 million, in the phishing attack.

According to Scam Sniffer, the address is linked to venture firm Continue Capital, although the company has yet to comment on the matter.

The attack is reportedly linked to the Angel Drainer group, a notorious provider of “draining-as-a-service” (DAAS).

Yu Xian, founder of blockchain security firm SlowMist, identified Angel Drainer's involvement in the crypto whale attack. He noted that the group provides scammers with phishing tools like fake social media accounts and websites.

In exchange for a share of the stolen funds, these tools are used to carry out phishing attacks. Angel Drainer's activities have had a significant impact on the crypto sector.

According to a report by SlowMist, the group's actions contributed to the theft of $295 million worth of digital assets from 324,000 victims in 2023 alone.

Phishing scams have remained a persistent issue in the crypto sector, with Scam Sniffer reporting losses of about $126 million in the third quarter of 2024 from such attacks.

The crypto whale's loss also affected the value of DETH, causing it to lose its 1:1 exchange rate with ETH.

On-chain analyst Ember CN disclosed that the attacker exchanged the stolen DETH for ETH via a decentralized exchange. However, due to a lack of sufficient liquidity in the DETH pool, the attacker was only able to obtain 2,288 ETH from the 14,079 DETH stolen.

The stolen DETH was quickly swapped for ETH on a decentralized exchange. But due to insufficient liquidity in the DETH pool, the attacker could only obtain 2,288 ETH from the 14,079 DETH stolen. The remaining DETH was sold at a loss, causing the DETH/WETH peg to slip.

Following the theft, the value of the digital assets fell sharply by 85%, marking a significant blow to its stability.

Decentralized trading platform Duo Exchange confirmed the phishing attack on its platform.

In an Oct. 11 post on X, the exchange stated that over 10,000 DETH had been dumped on automated market makers (AMMs), causing a DETH price depeg.

However, Duo Exchange assured users that its systems remain fully operational and secure.

The phishing attack also impacted individual wallets and the DeFi sector’s total value locked (TVL).

Data from DeFiLlama showed a sharp drop in Duo Exchange’s TVL, from $103 million to $86 million, within a single day.

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