Crypto Victim Loses $1.57M in Shocking Permit Phishing Scam

Published by

Elena R

October 15, 2024

Permit phishing, a growing threat in the cryptocurrency world has caught another victim, resulting in a loss of $1.57 million. Scam Sniffer, a web3 scam detection firm, reports that the victim, possibly linked to AzukiPH, unknowingly signed a fake “permit” that allowed cybercriminals to take control of their cryptocurrency wallet.

Here’s how all we need to know.

How the Scheme Unfolded

After gaining access, the attackers quickly converted the stolen tokens into Ethereum and migrated to the Ethereum Mainnet using Synapse, a popular cross-chain network. This incident highlights how common permit phishing has become for stealing assets from unsuspecting targets.

In these scams, attackers trick victims into approving what looks like a harmless transaction, unknowingly giving control of their tokens to the fraudsters. Once authorization is granted, hackers can manage funds freely, often draining wallets in as little as five minutes.

These attacks take advantage of common misunderstandings about decentralized finance (DeFi), especially regarding temporary token spending through the CREATE2 operation.

The Case of AzukiPH

Blockchain analytics firm Arkham Intelligence examined this case and found that the victim’s funds were first converted to ETH before being transferred to the Ethereum Mainnet via Synapse. This trend is increasingly popular among hackers, allowing them to hide stolen assets from law enforcement.

The link to AzukiPH is particularly concerning, as it attracts many people involved in NFTs and DeFi, making them prime targets for phishing attacks.

Stay Informed, Stay Safe

As more sophisticated phishing attacks emerge, it’s crucial for crypto holders to be cautious. Always verify the reasons behind signing any permits or transactions before proceeding.

When dealing with cryptocurrency transactions, take a moment to review each transaction carefully and be vigilant about the addresses you interact with. The rapid increase in such incidents highlights the urgent need for better security awareness and improved wallet interface protection.

Do you think stricter regulations are necessary to prevent such incidents?

Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.