The cryptocurrency world is witnessing growing concerns as two separate incidents emerged that alarmed both investors and authorities. UK police have issued a stern warning against cryptocurrency platform Coscoin involved in a £215,000 scam, while Wise Lending, behind altcoin WISE, has reportedly suffered significant exploitation in the decentralized finance (DeFi) space.
Coscoin scam scandal
Investors are facing turmoil after UK police issued a warning against Coscoin, a cryptocurrency platform promising high investment returns. Despite claiming to use advanced artificial intelligence for quantitative trading, Coscoin has come under scrutiny for fraudulent activities. A recent BBC report highlighted the platform’s questionable operations, sparking concerns among investors who have been struggling to recover or access their funds since late November.
A disturbing case involving 78 people in the north-east of England reveals a total loss of approximately 214,869 euros, with an average loss of 2,900 euros per person. The North East Regional Organized Crime Unit suspects Coscoin, believed to be based in Washington, USA, exhibits characteristics of a Ponzi or pyramid scheme. Detective Inspector Paddy O’Keefe is advising caution, urging the public to be wary of lucrative offers and new scams targeting previous victims.
Breach at Wise Lending, behind altcoin WISE
In a separate incident, Wise Lending became the latest victim of a cybersecurity breach in the DeFi space. PeckShield Inc., a blockchain security and data analytics company, reported a significant loss of approximately 177 ETH, equivalent to $464,000 at market price. The exploit, attributed to a flaw in Wise Lending’s share accounting logic, allowed attackers to manipulate a nearly empty market and borrow significant funds from lending markets.
Flash credit attacks have become increasingly common, along with Oracle manipulation and attacks on platforms such as AAVE v2. CertiK, a player in blockchain security, expresses concern about the vulnerability of DeFi platforms to sophisticated attacks. This follows the takeover of Radiant Capital last week, which resulted in the theft of 1900 ETH. The repeated pattern of exploits in the DeFi space, including previous incidents such as Onyx Protocol and Euler Finance, highlights the need for improved security measures. As the industry faces evolving risks, maintaining trust in decentralized financial systems becomes crucial.
Recent breaches underscore the urgency for continuous improvement in protecting investors’ assets and ensuring the integrity of the cryptocurrency space. The cryptocurrency community faces challenges in maintaining trust and security as authorities investigate the Coscoin scam and Wise Lending’s security breach. While investors are reminded to exercise caution, the wider industry also needs to prioritize increasing security measures to reduce the risks associated with decentralized finance.
To be informed about the latest developments, follow us Twitter’in, Facebookin and InstagramFollow on . Telegram And YouTube Join our channel.