{"id":571287,"date":"2024-01-25T00:00:58","date_gmt":"2024-01-25T00:00:58","guid":{"rendered":"https:\/\/wncen.com\/?p=571287"},"modified":"2024-01-24T15:57:39","modified_gmt":"2024-01-24T15:57:39","slug":"crypto-wallets-drained-off-600k-due-to-ignored-phishing-attack","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/ethereum\/crypto-wallets-drained-off-600k-due-to-ignored-phishing-attack\/","title":{"rendered":"Crypto Wallets Drained Off $600K Due To Ignored Phishing Attack"},"content":{"rendered":"<p style=\"font-weight: 400\">On January 23, Wallet Connect and other web3 companies <a href=\"https:\/\/wncen.com\/news\/company\/top-ten-web3-companies-to-watch-in-2024\/\" target=\"_blank\" rel=\"noopener \">informed<\/a> their users about a phishing scam using official web3 companies&#8217; email addresses to steal funds from thousands of crypto wallets.<\/p>\n<div class=\"related-reading-shortcode\">Related Reading: <a href=\"https:\/\/wncen.com\/news\/by-the-numbers-crypto-users-lose-300-million-to-phishing-scams-in-2023\/\" target=\"_blank\" rel=\"noopener \">By The Numbers: Crypto Users Lose $300 Million To Phishing Scams In 2023<\/a><\/div>\n<h2 style=\"font-weight: 400\">A Massive Phishing Campaign<\/h2>\n<p style=\"font-weight: 400\">Wallet Connect took X to notify its community about an authorized email sent from a Wallet Connect-linked email address. This email prompted the receivers to open a link to claim an airdrop, however, the link led to a malicious site and, as Wallet Connect confirmed, it was not issued directly by the team or anyone affiliated. Wallet Connect contacted web3 security and privacy firm Blockaid to investigate the phishing scam further.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">We&#39;ve detected a sophisticated phishing attack impersonating <a href=\"https:\/\/twitter.com\/WalletConnect?ref_src=twsrc%5Etfw\" rel=\"nofollow\">@WalletConnect<\/a> via a fake email linking to a malicious dapp.<\/p>\n<p>Blockaid enabled wallets are safe.<a href=\"https:\/\/t.co\/quz9olGrpZ\" rel=\"nofollow\">https:\/\/t.co\/quz9olGrpZ<\/a> <a href=\"https:\/\/t.co\/TYS0BjIk2J\" rel=\"nofollow\">pic.twitter.com\/TYS0BjIk2J<\/a><\/p>\n<p>&mdash; Blockaid (@blockaid_) <a href=\"https:\/\/twitter.com\/blockaid_\/status\/93774416?ref_src=twsrc%5Etfw\" rel=\"nofollow\">January 23, 2024<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p style=\"font-weight: 400\">In the following hours, crypto sleuth <a href=\"https:\/\/twitter.com\/zachxbt\/status\/95205638\" target=\"_blank\" rel=\"noopener nofollow\">posted<\/a> a community alert to inform unaware users that CoinTelegraph, Token Terminal, and De.Fi team emails were also compromised, signaling that a massive and more sophisticated phishing campaign was happening. \u00a0At the time of the post, around $580K had been stolen.<\/p>\n<p style=\"font-weight: 400\">After investigating, Blockaid later revealed that the attacker \u201cwas able to leverage a vulnerability in email service provider MailerLite to impersonate web3 companies.\u201d<\/p>\n<p style=\"font-weight: 400\">Email <a href=\"https:\/\/wncen.com\/news\/company\/how-bitcoin-phishing-scams-are-stealing-millions\/\" target=\"_blank\" rel=\"noopener \">phishing scams<\/a> are common among cyber scammers, making users wary of most suspicious links or emails. At the same time, companies and entities advise against opening links that do not come from their official channels. In this case, the attacker was able to trick a vast number of users from these companies as the malicious links came from their official email addresses.<\/p>\n<p style=\"font-weight: 400\">The compromise allowed the attacker to send convincing emails with malicious links attached that led to wallet drainer websites. Specifically, the links led to several malicious dApps that utilize the Angel Drainer Group infrastructure.<\/p>\n<p style=\"font-weight: 400\">The attackers, as Bloackaid explained, took advantage of the data previously provided to Mailer Lite, as it had been given access by these companies to send emails on behalf of these sites\u2019 domains before, specifically using pre-existing DNS records, as detailed in the thread:<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Specifically, they used \u201cdangling dns\u201d records which were created and associated with Mailer Lite (previously used by these companies). After closing their accounts these DNS records remain active, giving attackers the opportunity to claim and impersonate these accounts. <a href=\"https:\/\/t.co\/cbTpc5MXu1\" rel=\"nofollow\">pic.twitter.com\/cbTpc5MXu1<\/a><\/p>\n<p>&mdash; Blockaid (@blockaid_) <a href=\"https:\/\/twitter.com\/blockaid_\/status\/32778753?ref_src=twsrc%5Etfw\" rel=\"nofollow\">January 23, 2024<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h2 style=\"font-weight: 400\">MailerLite Explains Security Breach<\/h2>\n<p style=\"font-weight: 400\">The explanation later came Via an email, where MailerLite explained that the investigation showed that a member of their customer support team inadvertently became the <a href=\"https:\/\/wncen.com\/crypto\/this-amd-ryzen-bug-compromise-crypto-wallet-keys\/\" target=\"_blank\" rel=\"noopener \">initial point of the compromise<\/a>. As the email explains:<\/p>\n<blockquote>\n<p style=\"font-weight: 400\">The team member, responding to a customer inquiry via our support portal, clicked on an image that was deceptively linked to a fraudulent Google sign-in page. Mistakenly entering their credentials there, the perpetrator(s) gained access to their account. The intrusion was inadvertently authenticated by the team member through a mobile phone confirmation, believing it to be a legitimate access attempt. This breach enabled the perpetrators) to penetrate our internal admin panel.<\/p>\n<\/blockquote>\n<p style=\"font-weight: 400\">MailerLite further adds that the attacker reset the password for a specific user on the admin panel to consolidate the unauthorized control further. This control gave them access to 117 accounts, of which they only focused on cryptocurrency-related accounts for the phishing campaign attack.<\/p>\n<p style=\"font-weight: 400\">An anonymous Reddit user <a href=\"https:\/\/www.reddit.com\/r\/CryptoCurrency\/comments\/19ea42n\/over_35m_drained_from_phishing_scam_cointelegraph\/\" target=\"_blank\" rel=\"noopener nofollow\">posted<\/a> an analysis of the situation and gave a closer look at the attacker\u2019s transactions. The user revealed:<\/p>\n<blockquote>\n<p style=\"font-weight: 400\">One victim wallet appears to have lost 2.64M worth of XB Tokens. I&#8217;m showing about 2.7M sitting in the phishing wallet of 0xe7DA0424771E1778865b88752B3c7, while 518.75K went to 0xef3d9A1a4Bf6E042F5aaebe620B5cF327ea05d4D.<\/p>\n<\/blockquote>\n<p style=\"font-weight: 400\">The user stated that most stolen funds were in the first phishing address. At the same time, approximately $520,000 worth of ETH were sent to privacy protocol Railgun, and he believes that they will soon be moved through another mixer or exchange.<\/p>\n<div class=\"related-reading-shortcode\">Related Reading: <a href=\"https:\/\/wncen.com\/news\/company\/4-ways-crypto-investors-can-avoid-phishing-scams\/\" target=\"_blank\" rel=\"noopener \">4 Ways Crypto Investors Can Avoid Phishing Scams<\/a><\/div>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-571290 aligncenter\" src=\"https:\/\/wncen.com\/wp-content\/uploads\/2024\/01\/ETHUSDT_2024-01-24_10-47-39.png?resize=1024%2C388\" alt=\"ETH, ETHUSDT\" width=\"1024\" height=\"388\" srcset=\"https:\/\/wncen.com\/wp-content\/uploads\/2024\/01\/ETHUSDT_2024-01-24_10-47-39.png?w=1054 1054w, https:\/\/wncen.com\/wp-content\/uploads\/2024\/01\/ETHUSDT_2024-01-24_10-47-39.png?w=460 460w, https:\/\/wncen.com\/wp-content\/uploads\/2024\/01\/ETHUSDT_2024-01-24_10-47-39.png?w=768 768w, https:\/\/wncen.com\/wp-content\/uploads\/2024\/01\/ETHUSDT_2024-01-24_10-47-39.png?w=860 860w, https:\/\/wncen.com\/wp-content\/uploads\/2024\/01\/ETHUSDT_2024-01-24_10-47-39.png?w=750 750w\" sizes=\"(max-width: 1000px) 100vw, 1000px\"><\/p>\n<pre>\u00a0 ETH is trading at $2,232.92 in the hourly chart. Source: ETHUSDT on <a href=\"https:\/\/www.tradingview.com\/x\/1LOfHlTh\/\" target=\"_blank\" rel=\"noopener nofollow\">TradingView.com<\/a><\/pre>\n<div class=\"disclaimer-shortcode\">Featured image from Unsplash.com, Chart from TradingView.com<\/div>\n","protected":false},"excerpt":{"rendered":"<p>On January 23, Wallet Connect and other web3 companies informed their users about a phishing scam using official web3 companies&#8217; email addresses to steal funds from thousands of crypto wallets. Related Reading: By The Numbers: Crypto Users Lose $300 Million To Phishing Scams In 2023 A Massive Phishing Campaign Wallet Connect took X to notify its community about an authorized email sent from a Wallet Connect-linked email address. This email prompted the receivers to open a link to claim an airdrop, however, the link led to a malicious site and, as Wallet Connect confirmed, it was not issued directly by the team or anyone affiliated. Wallet Connect contacted web3 security and privacy firm Blockaid to investigate the phishing scam further. In the following hours, crypto sleuth posted a community alert to inform unaware users that CoinTelegraph, Token Terminal, and De.Fi team emails were also compromised, signaling that a massive and more sophisticated phishing campaign was happening. \u00a0At the time of the post, around $580K had been stolen. After investigating, Blockaid later revealed that the attacker \u201cwas able to leverage a vulnerability in email service provider MailerLite to impersonate web3 companies.\u201d Email phishing scams are common among cyber scammers, making users wary of most suspicious links or emails. At the same time, companies and entities advise against opening links that do not come from their official channels. In this case, the attacker was able to trick a vast number of users from these companies as the malicious links came from their official email addresses. The compromise allowed the attacker to send convincing emails with malicious links attached that led to wallet drainer websites. Specifically, the links led to several malicious dApps that utilize the Angel Drainer Group infrastructure. The attackers, as Bloackaid explained, took advantage of the data previously provided to Mailer Lite, as it had been given access by these companies to send emails on behalf of these sites\u2019 domains before, specifically using pre-existing DNS records, as detailed in the thread: Specifically, they used \u201cdangling dns\u201d records which were created and associated with Mailer Lite (previously used by these companies). After closing their accounts these DNS records remain active, giving attackers the opportunity to claim and impersonate these accounts. pic.twitter.com\/cbTpc5MXu1 &mdash; Blockaid (@blockaid_) January 23, 2024 MailerLite Explains Security Breach The explanation later came Via an email, where MailerLite explained that the investigation showed that a member of their customer support team inadvertently became the initial point of the compromise. As the email explains: The team member, responding to a customer inquiry via our support portal, clicked on an image that was deceptively linked to a fraudulent Google sign-in page. Mistakenly entering their credentials there, the perpetrator(s) gained access to their account. The intrusion was inadvertently authenticated by the team member through a mobile phone confirmation, believing it to be a legitimate access attempt. This breach enabled the perpetrators) to penetrate our internal admin panel. MailerLite further adds that the attacker reset the password for a specific user on the admin panel to consolidate the unauthorized control further. This control gave them access to 117 accounts, of which they only focused on cryptocurrency-related accounts for the phishing campaign attack. An anonymous Reddit user posted an analysis of the situation and gave a closer look at the attacker\u2019s transactions. The user revealed: One victim wallet appears to have lost 2.64M worth of XB Tokens. I&#8217;m showing about 2.7M sitting in the phishing wallet of 0xe7DA0424771E1778865b88752B3c7, while 518.75K went to 0xef3d9A1a4Bf6E042F5aaebe620B5cF327ea05d4D. The user stated that most stolen funds were in the first phishing address. At the same time, approximately $520,000 worth of ETH were sent to privacy protocol Railgun, and he believes that they will soon be moved through another mixer or exchange. Related Reading: 4 Ways Crypto Investors Can Avoid Phishing Scams \u00a0 ETH is trading at $2,232.92 in the hourly chart. Source: ETHUSDT on TradingView.com Featured image from Unsplash.com, Chart from TradingView.com<\/p>\n","protected":false},"author":614,"featured_media":571304,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[13625],"tags":[14186,8323,78803,87777,17003],"class_list":["post-571287","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethereum","tag-crypto-scam","tag-eth","tag-ethusdt","tag-phishing-attacks","tag-phishing-scam"],"acf":[],"yoast_head":"\n<title>Crypto Wallets Drained Off $600K Due To Ignored Phishing Attack<\/title>\n<meta name=\"description\" content=\"Over $600K, most of which were ETH, were stolen from crypto wallets in a recent email phishing attack aimed at web3 companies.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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Her goal as a writer is to create informative, complete, and easily understandable pieces accessible to those entering the crypto space. After learning about cryptocurrencies in 2019, Rubmar became curious about the world of possibilities the industry offered, quickly learning that financial freedom was at the palm of her hand with the developing technology. From a young age, Rubmar was curious about how languages work, finding special interest in wordplay and the peculiarities of dialects. Her curiosity grew as she became an avid reader in her teenage years. She explored freedom and new words through her favorite books, which shaped her view of the world. Rubmar acquired the necessary skills for in-depth research and analytical thinking at university, where she studied Literature and Linguistics. Her studies have given her a sharp perspective on several topics and allowed her to turn every stone in her investigations. In 2019, she first dipped her toes in the crypto industry when a friend introduced her to Bitcoin and cryptocurrencies, but it wasn\u2019t until 2020 that she started to dive into the depth of the industry. As Rubmar began to understand the mechanics of the crypto sphere, she saw a new world yet to be explored. At the beginning of her crypto voyage, she discovered a new system that allowed her to have control over her finances. As a young adult of the 21st century, Rubmar has faced the challenges of the traditional banking system and the restrictions of fiat money. After the failure of her home country\u2019s economy, the limitations of traditional finances became clear. The bureaucratic, outdated structure made her feel hopeless and powerless amid an aggressive and distorted system created by hyperinflation. However, learning about decentralization and self-custody opened a realm of opportunities. Cryptocurrencies allowed her to experience financial control for the first time and expand her financial education. Moreover, the peculiar nature of the crypto community sparked Rubmar\u2019s curiosity about the other layers of the industry. As a result, she found a particular interest in discovering the diverse perspectives of investors, market watchers, experts, and developers. Her attempts to better understand the crypto space made her realize the strong links of the community with other industries, enriching her perspective of the sector. As someone who spends most of her day online, Rubmar enjoys finding the points where the crypto world meets with her other passions and hobbies \u00ad\u2013or her favorite memes. In her free time, she usually finds joy in different art forms. As a child, she enlisted in every extra-curricular activity in her hometown, including music classes, dancing, jewelry making, and the local chorus. Despite her many attempts to learn different instruments, Rubmar only knows how to play the xylophone, which she played for 7 years in her school\u2019s marching band. She also has a passion for learning new languages and cultures, having set the goal to learn another six languages \u00ad\u2013 currently attempting to learn Italian and Korean. Scrapbooking, paper crafting, and bookbinding are her biggest interests outside of work, constantly taking classes and attending workshops to learn new techniques. The rest of her free time is spent stressing over football matches and transfer market news or feeding cats \u2013hers or stray. In summary, Rubmar seeks to present entertaining and educational pieces to be enjoyed by everybody, aiming to report on the latest news and offer a unique perspective while adding a meme or a pun whenever possible.\",\"url\":\"https:\/\/wncen.com\/author\/rubmargarcia\/\"}]}<\/script>\n","yoast_head_json":{"title":"Crypto Wallets Drained Off $600K Due To Ignored Phishing Attack","description":"Over $600K, most of which were ETH, were stolen from crypto wallets in a recent email phishing attack aimed at web3 companies.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/wncen.com\/news\/ethereum\/crypto-wallets-drained-off-600k-due-to-ignored-phishing-attack\/","og_locale":"en_US","og_type":"article","og_title":"Crypto Wallets Drained Off $600K Due To Ignored Phishing Attack","og_description":"Over $600K, most of which were ETH, were stolen from crypto 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Her goal as a writer is to create informative, complete, and easily understandable pieces accessible to those entering the crypto space. After learning about cryptocurrencies in 2019, Rubmar became curious about the world of possibilities the industry offered, quickly learning that financial freedom was at the palm of her hand with the developing technology. From a young age, Rubmar was curious about how languages work, finding special interest in wordplay and the peculiarities of dialects. Her curiosity grew as she became an avid reader in her teenage years. She explored freedom and new words through her favorite books, which shaped her view of the world. Rubmar acquired the necessary skills for in-depth research and analytical thinking at university, where she studied Literature and Linguistics. Her studies have given her a sharp perspective on several topics and allowed her to turn every stone in her investigations. In 2019, she first dipped her toes in the crypto industry when a friend introduced her to Bitcoin and cryptocurrencies, but it wasn\u2019t until 2020 that she started to dive into the depth of the industry. As Rubmar began to understand the mechanics of the crypto sphere, she saw a new world yet to be explored. At the beginning of her crypto voyage, she discovered a new system that allowed her to have control over her finances. As a young adult of the 21st century, Rubmar has faced the challenges of the traditional banking system and the restrictions of fiat money. After the failure of her home country\u2019s economy, the limitations of traditional finances became clear. The bureaucratic, outdated structure made her feel hopeless and powerless amid an aggressive and distorted system created by hyperinflation. However, learning about decentralization and self-custody opened a realm of opportunities. Cryptocurrencies allowed her to experience financial control for the first time and expand her financial education. Moreover, the peculiar nature of the crypto community sparked Rubmar\u2019s curiosity about the other layers of the industry. As a result, she found a particular interest in discovering the diverse perspectives of investors, market watchers, experts, and developers. Her attempts to better understand the crypto space made her realize the strong links of the community with other industries, enriching her perspective of the sector. As someone who spends most of her day online, Rubmar enjoys finding the points where the crypto world meets with her other passions and hobbies \u00ad\u2013or her favorite memes. In her free time, she usually finds joy in different art forms. As a child, she enlisted in every extra-curricular activity in her hometown, including music classes, dancing, jewelry making, and the local chorus. Despite her many attempts to learn different instruments, Rubmar only knows how to play the xylophone, which she played for 7 years in her school\u2019s marching band. She also has a passion for learning new languages and cultures, having set the goal to learn another six languages \u00ad\u2013 currently attempting to learn Italian and Korean. Scrapbooking, paper crafting, and bookbinding are her biggest interests outside of work, constantly taking classes and attending workshops to learn new techniques. The rest of her free time is spent stressing over football matches and transfer market news or feeding cats \u2013hers or stray. 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