Ethereum Foundation’s Email Hacked to Promote Lido Staking Fraud

Ethereum Foundation’s Email Hacked to Promote Lido Staking Fraud

The Ethereum Foundation reported on Tuesday that its email account, used for official updates, was compromised on June 23, resulting in the promotion of a phishing scam. The foundation has since regained control of the account and halted the distribution of malicious emails.

Phishing Scam Targeted Over 35,000 People

The foundation’s blog post revealed that the phishing scam reached more than 35,000 recipients, including subscribers, via the foundation’s official email address. Fortunately, no cryptocurrency losses were reported. However, the email addresses of 81 subscribers might have been compromised.

The fraudulent emails falsely advertised a partnership between the Ethereum Foundation and LidoDAO, promising an enticing 6.8% annual return on staked cryptocurrencies such as Ether, Wrapped Ether, or staked Ether. The scam misleadingly claimed that the staking process was “Protected and Verified by The Ethereum Foundation.”

Malicious Link Aimed to Drain Wallets

The phishing emails contained a malicious link. Although clicking the link did not directly steal cryptocurrency, it covertly ran a background program designed to drain the user’s wallet. If recipients connected their crypto wallet to the fake website and signed the transaction, believing it to be legitimate, their funds would have been stolen.

An investigation uncovered that the attackers used a combination of their own email list and addresses stolen from the Ethereum Foundation’s mailing list. In total, 81 email addresses were compromised that were not already on the attackers’ list.

Decline in Overall Crypto Hacks in June

While phishing scams continue to target cryptocurrency users, overall cryptocurrency hacks saw a notable decline in June. Security firm SlowMist recently issued a warning about increased phishing attempts on The Open Network (TON), a blockchain built on the Telegram platform, potentially compromising TON’s decentralized applications and exposing users to financial losses.

Despite the rise in phishing attacks, data from PeckShield indicated a significant drop in overall cryptocurrency hack-related losses in June, which totaled $176 million compared to $385 million in May.

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