The CEO and co-founder of Nest Wallet revealed that he was the victim of a cryptocurrency phishing attack. As a result, he shared that he lost 52 stETH, equivalent to $125,000. The security-focused crypto wallet app co-founder asked for help with the attack from ZackXBT, a crypto sleuth, and anyone else who could help.
Fake LFG token airdrop scam
The LFG token airdrop, which stands for “less fees and gas,” recently emerged as a reward initiative for Ethereum users who have spent more than $4,269 on transaction fees since 2016. The cryptocurrency airdrop aims to onboard these users to the Solana Blockchain. Unfortunately, a fake website masquerading as the official LFG token platform has emerged with the aim of stealing users’ funds. Thus, leading to high-profile victims like Nest Wallet co-founder Bill Lou. Fraud victim Lou shared the following about the issue:
I’m devastated guys. I just got scammed out of $125k of stEth while trying to claim the LFG airdrop. And I’m the founder of a wallet startup trying to improve wallet security…
How did cryptocurrency fraud happen?
Lou revealed that he was scammed out of $125,000 worth of stEth while trying to claim the LFG airdrop. Lou clicked on a link in an article that came up at the top of a Google search and directed him to the scam website. In her claim, she acknowledged using MetaMask instead of Nest Wallet. He said this was because Nest was trying to fix bugs in a test version.
Emphasizing the importance of transaction simulation, Lou stated that Nest Wallet includes this feature. However, he noted that the cryptocurrency wallet MetaMask completely lacks this feature. He suggested that it was possible to prevent such an event with appropriate simulation. Lou then advised users to always verify links from official sources. He also suggested that they consider using multisig wallets for enhanced security.
LFG made a statement and warned about the issue!
Bill Lou appears to be one of several victims of a phishing attack. Others have reported having their cryptocurrency wallets emptied after clicking on similar fake links. In response to these events, the LFG project acknowledged the problem. In this regard, it issued a warning about fraudulent accounts impersonating them. He urged users to report such accounts to help protect the community. In addition to this, he provided details of official X accounts and websites for verification.
The LFG project plans to airdrop a total of 400 billion LFG tokens to 387,000 qualified wallets. Additionally, unclaimed tokens will burn after a month. According to CoinGecko data, the current value of the LFG token is $0.000069. Approximately 25,000 users have claimed LFG tokens on Solana so far. cryptokoin.comAs you follow from , phishing scams continue to be a major problem in the crypto world. According to reports, in 2023, more than 324,000 cryptocurrency users fell victim to phishing scams. As a result, fraudsters managed to steal approximately $295 million in crypto assets.
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