Ethereum Users Targeted by Sleepdropping Scam

The Emergence of Sleepdropping

Ethereum users are facing a new digital fraud dubbed "sleepdropping," resulting in over $11.5 million in losses since December 2022. This scam involves sending deceptive ERC-1155 tokens, often masquerading as non-fungible tokens (NFTs), to unsuspecting users. The fraudulent tokens aim to lure individuals to fraudulent websites where they unknowingly approve transactions that result in their assets being stolen.

Scam Mechanism

The operation typically follows a three-phase strategy: distributing fake NFTs that appear legitimate, creating misleading websites, and deploying malicious smart contracts. These contracts trick users into transferring their funds to the scammers. More than 100 unique smart contracts have been identified with similar deployment patterns, indicating a systematic approach.

Impact on Ethereum Community

To date, over half a million addresses have received these deceptive airdrops, with more than 20,000 users falling victim. A notable case involved a fake Lido NFT token, falsely presented as a "badge" for claiming an airdrop. This scam was sophisticated, leveraging the reputation of an authentic smart contract that had previously issued legitimate airdrops.

Understanding the Risk

While the NFT itself does not threaten a user's wallet, the real danger lies in interacting with these fraudulent tokens. Believing the airdrop to be genuine can lead users to malicious sites where they inadvertently claim harmful tokens. This highlights the need for increased vigilance and education among Ethereum users to prevent further exploitation.

Understanding the complexities of ERC token contracts and exercising caution with airdrops can help mitigate the risks associated with sleepdropping scams.