An entity reportedly linked to a cryptocurrency venture capital fund has lost over $35 million in tokens due to a malicious permit transaction.

An unidentified on-chain entity has suffered a significant loss of wrapped Ethereum (fwDETH) tokens valued at $36 million after inadvertently signing a malicious transaction.

Crazy! Someone (probably related to Continue Fund) lost 15,079 fwDETH (worth $36M) by signing a “permit” phishing signature 6 hours ago! To avoid being phished, please do not click on any unknown links and do not sign any unknown signatures. Always double-check when signing…

In an X post on Friday, Oct. 11, blockchain monitoring account Lookonchain reported that the entity, believed to be associated with the crypto venture capital fund Continue Capital, lost 15,079 fwDETH — wrapped ETH tokens on Blast’s chain — due to a “permit” phishing signature. As of press time, Continue Capital has made no public statements on the matter.

Following the news, the price of fwDETH plummeted by more than 95% in its trading pair with fwWETH before rebounding to a 40% decline. An X user under the alias @roffett_eth noted that the price drop led to “attacks on protocols like PAC Finance and Orbit Finance,” though the extent of these attacks remains unclear. Neither project has commented on the situation as of this writing.

Understanding Phishing Attacks in Cryptocurrency

Phishing attacks in the cryptocurrency sector are becoming increasingly sophisticated, often disguised as legitimate requests for user permissions. In this case, the victim appears to have fallen prey to a tactic that exploits user trust in digital signatures, underscoring the persistent risks within the crypto landscape.

How to Protect Yourself from Phishing Attacks

To safeguard your assets, it’s crucial to be vigilant against phishing attempts. Here are some essential tips:

  • Verify URLs: Always double-check website URLs before entering sensitive information or signing transactions.
  • Use Hardware Wallets: Store your private keys in hardware wallets to add an extra layer of security.
  • Enable Two-Factor Authentication (2FA): Use 2FA to secure your accounts, making it harder for attackers to gain access.
  • Be Skeptical: Do not click on unknown links or sign unfamiliar signatures. Always verify the source.
  • Stay Informed: Keep up with the latest security practices and be aware of common phishing tactics.

As the cryptocurrency industry evolves, so do the methods employed by malicious actors. By staying informed and vigilant, you can better protect your investments and navigate the crypto landscape safely.

For more news and updates on the cryptocurrency market, stay tuned to Global Crypto News.

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