Chainalysis Observes Lazarus Group Migrated to YoMix Following Ban of Sinbad Mixer

Founder of Nest Wallet Loses $125,000 in a Phishing Scam

In recent events, cybercriminals have shifted to the crypto sector to steal customers’ hard-earned funds. On Tuesday, January 2, the chief executive of Nest crypto wallet, Bill Lou, fell into the hacker’s trap by clicking a phishing link.

The embattled CEO regretted that after clicking the phishing link to claim a fake airdrop, the hackers took control of his account and siphoned 52 stETH tokens worth $125, 000.

Nest Wallet CEO Hit by $125,000 Phishing Attack

The executive lamented that the hackers developed a fake LFG token airdrop that resembles the original less fees and gas (LFG) token issued to the Ethereum proponents. On January 1, the LFG team launched a program to reward the Ethereum investors who have consistently invested in the buying and selling of crypto assets centered on Solana ecosystem.

According to the LFG post, the eligible candidates were required to incur transaction fees amounting to $4269 from 2016 to qualify for the reward. The airdropping of LFG token  aimed at motivating the crypto investors to invest in Solana and expand its customer base.

The launching of the LFG reward program sparked excitement among crypto investors. On the X platform, the crypto community flocked to the LFG platform to earn the reward.

Following launching the LFG reward, the hacker plotted ways to steal from the customers through a phishing attack. On the fake LFG link, the hackers outline the steps to follow to earn the reward.

Hackers shared the phishing link on various platforms to reach a large audience. Unfortunately, Mr.Lou was among the victims who fell into the hackers’ trap. Shortly after discovering the hacking activity, the troubled crypto investor updated the X community on the January 1 incident.

Hackers Launch Fake LFG Airdrop Links to Scam Customers

In his tweet, Lou admitted that he got scammed around $125,000 stETH while attempting to claim the LFG airdrop. The crypto investor explained that he clicked a link that appeared in an article on Google.

The suspicious article provided a comprehensive guide on how to claim the LPG. Lou regretted that he blindly followed the instructions and signed a message. The disgraced investor used his MetaMask account to claim the reward during the process.

He confessed that his Nest wallet had suffered a technical error at that time, and the developers were fixing the bug.

The CEO admitted that the Nest wallet had unique security features compared to MetaMask. He added that the lack of adequate security protocol on the MetaMask contributed to the hack since it lacked a transaction simulation feature.

Following the attack, the CEO advised the investors and customers to consider multisig-enabled wallets for security purposes. Hours after Lou reported that phishing scam, another investor complained of losing substantial funds for the hacking incident.

The affected customers regretted that the hackers gained access to their accounts after clicking the fake link and drained all the funds. Even though the hack victims did not disclose the exact amount lost, the complaints on the X platform demonstrated that the hack affected several individuals.

Rise of Crypto Crime

Lately, the crypto sector has suffered huge losses from crypto scams. A Federal Trade Commission (FTC) report demonstrated that between January 2021 and June 2023, Americans lost approximately $2.7 billion from scams.

The FTC report demonstrated that most scams originated from various social media platforms. This implies that the scammers used the online platform to deceive the customers into dubious schemes.

In response to the attack, the LFG team took decisive action to report the matter to the relevant authority. In a regretful acknowledgment of the attack, the LFG team confessed that they were hinted about the phishing link shared on the X platform.

The LFG group urged the industry leaders to ensure the end user is safe by providing details of the official X account and website data. A review of the LFG report demonstrated that around 387,000 wallets were eligible for the program.

The company intends to airdrop around 400 billion LFG tokens. As of this writing, around 25,000 users have claimed the LFG token. A review of the CoinGecko report demonstrated that the LFG token was trading at $ 0.000069.

All trademarks, logos, and images displayed on this site belong to their respective owners and have been utilized under the Fair Use Act. The materials on this site should not be interpreted as financial advice. When we incorporate content from other sites, we ensure each author receives proper attribution by providing a link to the original content. This site might maintain financial affiliations with a selection of the brands and firms mentioned herein. As a result, we may receive compensation if our readers opt to click on these links within our content and subsequently register for the products or services on offer. However, we neither represent nor endorse these services, brands, or companies. Therefore, any disputes that may arise with the mentioned brands or companies need to be directly addressed with the respective parties involved. We urge our readers to exercise their own judgement when clicking on links within our content and ultimately signing up for any products or services. The responsibility lies solely with them. Please read our full disclaimer and terms of use policy here.

Leave a Reply

Your email address will not be published. Required fields are marked *