Cryptocurrency hackers stole $ 11 million in digital tokens from a user

According to blockchain security company Scam Sniffer, a MakerDAO investor lost 3,657 MKR tokens worth $ 8.7 million and 2.56 million PT Ethena tokens worth $ 2.4 million by signing several fraudulent «authorizations.»

Arkham Intelligence analysts examined the transactions associated with the victim’s address and established his connection to a MakerDAO management delegate. MakerDAO governance delegates represent the interests of MKR token holders who have transferred their voting rights to them. Delegates vote on various proposals, which may include changes to protocol parameters, distribution of compensation, launch of new projects, and other important decisions affecting the operation of the MakerDAO protocol.

All MKR holders can participate in project management, but many prefer to delegate voting rights to representatives. This way, delegates gain real power over the protocol.

«Three offline authorization signatures were stolen through a phishing site, resulting in a loss of about $ 11 million,» explained Yu Xian, founder of SlowMist.

After the theft, analytics platform Lookonchain reported that the attacker exchanged the assets for Ethereum, which led to a 7% drop in MKR’s price to $ 2280. Since then, the token has recovered slightly and is trading at $ 2335 at the time of publication.

Etherscan has flagged the attacker’s address as a phishing wallet that currently holds approximately $ 760,000 in various digital assets. Fraudsters often create fake social media accounts to deceive users and steal their sensitive information.