Tag: Crypto Scandals

Bybit Hacker Tried to Launder Stolen Crypto Through Memecoins – Got Shut Down

Summary: One of the exploiters behind the huge Bybit hack attempted to clean their gains on Pump.fun but was quickly closed. Before being caught, they had already recorded over $26 million in volume trades through a memecoin called “QinShihuang (500000).”

Pump.fun isn’t messing around when it comes to stopping bad actors. The platform just shut down a hacker connected to the Bybit exchange hack, cutting off their attempt to move stolen funds through memecoin trading.

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Blockchain records show the hacker, using wallet 5STkQy…95T7Cq, sent 60 SOL to another wallet, which then launched the QinShihuang token on Pump.fun. It seems the plan was to use the speedy, high-volume memecoins space to clean the stolen funds. But Pump.fun got there ahead of them and froze them from releasing more tokens.

The hack was huge—more than 400,000 ETH worth about $1.5 billion was stolen from a cold wallet, making it one of the biggest exchange hacks in history.Despite the uncertainty, Bybit had promised customers that their funds were secure through its 1:1 reserve system. Trading and withdrawals continued uninterrupted, which meant that they were not going to allow a hacker to interfere with business.

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As exchanges like Pump.fun upped their security, the bad guys are starting to lose places to hide.

Kanye West Shuts Down $2M Crypto Scam Offer: ‘Not Scamming My Fam

Kanye West, aka Ye, just dropped some major tea on X—turning down a $2M offer to shill a shady crypto scheme. Like, who does that? King move, honestly. He spilled the deets in a Feb. 7 post, exposing how scammers wanted him to post fake crypto promo to his 32.6M followers, then pull the classic “my account got hacked” card. Sketchy, right? But Ye said, “Nah, not scamming my fam,” and dipped.

The deal? $750K upfront to keep the post live for 8 hours, then another $1.25M after 16 hours. Big yikes. Ye clapped back with, “I was proposed 2 million dollars to scam my community. Those left of it. I said no and stopped working with their person who proposed it.” Periodt.

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Later, he slid into crypto DMs, asking for a trusted contact, and someone name-dropped Coinbase CEO Brian Armstrong. Could Ye be cooking up his own crypto project? Or is this just hype for a new album? Either way, the internet’s buzzing.

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Fun fact: Ye’s had beef with crypto before (remember Coinye in 2014?), but now he’s vibing with it on his own terms. Could merch in crypto be next? Stay tuned, fam.

India’s ED Investigates Paytm, RazorPay, and PayU in $25M Crypto Scam

Overview: A probe into the $25.5 million crypto scam by the Indian Enforcement Directorate puts big payment players like Paytm, RazorPay, and PayU in the limelight. The investigation, having frozen upwards of more than $5.81M thus far, has reportedly exposed large loopholes in how suspicious transactions were treated.

The HPZ Token scam has India’s financial regulators on red alert. This crypto mining scheme duped people in 20 states, raking in millions before transferring the loot overseas. Now, the ED is investigating eight payment gateways, including big names like Paytm, RazorPay, and PayU, for their part in processing such fraudulent transactions.

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The crackdown unveiled frozen funds across the platforms: PayU leads the chart at $1.51M, Easebuzz follows with $387K, and RazorPay stands at $208K. The reports quote these companies to have helped in facilitating the bulk transactions without flagging suspicion. The ED is grilling the companies as to whether or not they filed the Suspicious Transaction Reports with the RBI or the Financial Intelligence Unit.

This scam operated through more than 50 companies in Delhi and Karnataka, with operations spilling over into Maharashtra and Gujarat. ED is now tracing the cash trail, closing in on crypto fraud.

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This bust is a wake-up call to everybody riding the crypto wave in India. Always DYOR, folks.

‘Transaction Simulation Spoofing’: The New Crypto Scam You Need to Know

Crypto scams just keep getting sneakier. The latest scheme on the block? ‘Transaction simulation spoofing.’ Scammers are setting up fake websites that look just like legit platforms for transaction simulations, tricking users into handing over their crypto.

Transaction simulations, or ‘dry runs,’ let you preview a transaction’s outcome before confirming it—basically a safety net. But these scams hit where it hurts: they’re targeting people trying to be safe.

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Here’s the play: scammers build sketchy sites that promise transaction simulations with a little ETH reward for using their ‘claim’ function. While users wait for the transaction to go through, the scammers quickly alter the smart contract. Once signed, boom—their wallets get drained. One unlucky user lost 143.45 ETH (nearly $460,000). Ouch.

How do you dodge this? Don’t fall for random ‘free claim’ services and always double-check websites. Tools like ScamSniffer on Chrome are clutch for keeping your crypto secure.

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The crypto space lost $494M to scams last year—wild, right? But remember, crypto’s still a safe bet if you stick to trusted platforms (like Binance for new tokens) and stay smart. At the end of the day, vigilance is your best friend in this game. Stay sharp out there!

North Korean Hackers Stole $659 Million in Crypto Last Year

In a rare joint statement, South Korea, the U.S., and Japan blamed North Korean hackers for stealing a record $659 million in cryptocurrency previous year. The stolen funds are believed to be going toward North Korea’s illegal weapons programs.

This marks the first time any three nations have blamed North Korea and that also directly for such insane large scale crypto robbery. Among the major targets were India’s WazirX exchange, losing $235 million, and Radiant Capital, which suffered a $50 million hack. An additional $374 million was stolen from platforms like DMM Bitcoin, Upbit, and Rain Management, according to industry reports.

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Hacking groups like Lazarus, linked to North Korea, are behind these thefts. They executed sophisticated cyberattacks, often employing malware to breach systems. “The DPRK’s cyber program poses a serious threat to global financial stability,” the statement warned.

The statement urged blockchain firms and crypto exchanges to bolster their defenses and avoid unknowingly hiring North Korean IT workers. “Our governments are committed to preventing thefts by the DPRK and recovering stolen funds,” it added.

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North Korea has a long history of using cybercrime to fund its missile and weapons programs. As these attacks grow in frequency and scale, the three nations pledged to work together to counter these rising cyber threats.

Pig Butchering Scams Swipe $3.6B in 2024: Major L for Crypto

Summary: Crypto took a massive hit in 2024, with scammers pulling off $3.6 billion in “pig butchering” schemes, mostly on Ethereum. These scams fooled people with fake investment promises, leaving wallets crying for help.



What’s the Deal with Pig Butchering?

Imagine scammers texting you and promoting a too good to be true gains and totally ignoring you after taking up the money. That’s pig butchering for you, with $3.6 billion stolen, mostly on Ethereum, this scam wasn’t just a headache it was a full-on migraine for crypto users.

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Numbers That Make You Wanna Log Off

According to Web3 security squad Cyvers, over 150,000 shady wallet addresses and 800,000 sketchy transactions were linked to scams. And it wasn’t just pig butchering access control breaches were another villain, racking up 81% of all financial losses.

The Glow-Up After the Mess

Not all heroes wear capes, ZachXBT, who helped claw back $1.3 billion of stolen funds. But even with the wins, 2024 had its share of jaw-droppers like the WazirX and Radiant Capital hacks. With $760M lost in Q3 alone.

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