Crypto Whale Loses $24 Million in Phishing Scam

A Costly Phishing Attack

A significant phishing scam resulted in a crypto whale losing $24 million in Rocket Pool Ether (rETH) and Lido staked Ether (stETH) on September 7. The whale, targeted by phishers, unknowingly authorized transactions that allowed the scammer to steal 9,579 stETH worth $15.6 million and 4,851 rETH valued at $8.5 million.

The Scam's Mechanics

The scam involved a fake link leading the whale to provide transaction authorization, which enabled the theft of their digital assets. The stolen funds were then transferred to a wallet labeled "FakePhishing186943" on Etherscan. This address is associated with multiple phishing campaigns, having received 2,000 ETH from the wallet involved in this attack.

Using Tornado Cash for Anonymity

After the theft, the scammer deposited 600 ETH, estimated at $936,000, into Tornado Cash, an Ethereum-based privacy tool. This move likely aims to obscure the transaction trail, making it challenging for authorities and trackers to trace the origin of the assets. Tornado Cash's privacy features have raised concerns, leading to sanctions by the US Treasury Department in August 2022.

Legal Implications and Sanctions

The US Treasury's Office of Foreign Assets Control (OFAC) has identified Tornado Cash as a tool for money laundering, allegedly used by North Korean hackers and other malicious actors. The platform's developers faced accusations of conspiracy and sanctions evasion. Roman Storm, one of the developers, pleaded not guilty to criminal charges, with his Russian passport confiscated and a $2 million bail set. Alexey Pertsev, another developer, was accused of money laundering and was held in Dutch detention for nine months before his release in April 2023.