Crypto Hack Weekly Report: Advanced Scams, New Tactics, Bigger Losses

This past week has been a rollercoaster for the cryptocurrency world, with a series of shocking cyberattacks exposing new vulnerabilities. From the first-ever AI poisoning attack to a $6.3 million phishing scam and a massive DeFi exploit, cybercriminals are stepping up their game. This reveals weaknesses that could impact the entire industry if left unchecked.

Read on to uncover the stories behind this week’s most significant breaches.

1. First-Ever AI Poisoning Attack Hits Solana Wallet

In the first-ever AI poisoning attack reported in the crypto space, a Solana wallet user lost $2,500. The victim used ChatGPT to develop a meme token sniping bot for a Solana-based platform called Pump.fun.

However, the attacker locked the user’s profile and put the API link containing the backdoor in the conversation. the attackers were able to access the user’s private wallet keys. SOL, USDC, and several meme coins, which were stolen were transferred to a wallet that had over 281 other similar trades connected to it. 

2. Phishing Scam Steals $6.3 Million: DOJ Takes Action

The U.S. Department of Justice (DOJ) has charged five individuals connected to the hacking groups 0ktapus and Scattered Spider. These groups carried out advanced phishing attacks targeting employees of tech and cryptocurrency companies in four countries.

The hackers bypassed two-factor authentication (2FA) to access company systems, stealing $6.3 million worth of cryptocurrency along with other sensitive information. If convicted, the accused face up to 20 years in prison.

3. Polter Finance Loses $7 Million in DeFi Exploit

The DeFi platform Polter Finance, built on the Fantom blockchain, suffered a $7 million loss in a smart contract exploit. The attacker used Tornado Cash, an Ethereum-based privacy platform, to launder the stolen funds before transferring them to the Fantom network.

Polter Finance responded by halting trading, notifying cross-chain bridges about the unauthorized transfers, and working with authorities to trace the stolen assets.

Growing Threat, Stronger Defenses

The cryptocurrency industry must take a proactive approach to security by implementing stronger code validation, monitoring threats, and collaborating with blockchain security experts. By addressing these risks, the industry can maintain trust and build a more secure decentralized finance ecosystem.

When opportunity grows, so do risks; the crypto industry must be ready to meet the challenge.