Veteran Crypto Trader Faces $6.5 Million Hack; Questions on Wallet Security Stir Up

• A well-experienced crypto trader lost over $6.5 million after unknowingly signing a phishing “permit” request that allowed hackers to drain all the funds in his wallet.
• Despite using a wallet with built-in protections, the attacker still managed to transfer large amounts of stETH within minutes.

One of the major issues that has put a setback on crypto adoption across the world is the number of attacks and phishing individual crypto investors and big platforms have faced. Earlier in the month, Tronweekly covered an article that recorded the increase in platform hacks for the month of August, and the data shared there revealed about $163 million was lost to crypto platform exploits.

With the highest loss amounting to $91.4 million. A few hours ago, another major loss was on-chain, with the victim of the exploit being a well-exposed crypto investor & trader. This latest news has causedmany in the crypto space to ask questions about how normal day-to-day investors can avoid these hacksif the experienced ones can fall victim to them.

Also Read: Crypto Hack Surge: $163 Million Was Stolen in August, Up 15% From July

How the Hackers Drained the Crypto Wallet

The attack was reported by Web3 Antivirus, and accordingto the details shared, the crypto trader lost more than $6.5 million after his wallet was drained. The affected wallets had been active for about four years, and the trader used them for trading and staking on platforms like Lido and Aave.

The hacking process started when the owner unknowingly signed a phishing “permit” request. Other details shared by the popular blockchain records platform, Etherscan, showed that the theft started at 9:28 PM UTC and finished within seven minutes.

Source: Web3 Antivirus

In one transfer, the hacker first sent about 188.38 stETH, which is worth about $807,000. The hacker then proceeded to transfer the stolen funds to a flagged drainer wallet. Again, the hacker moved another 753.53 stETH valued at $3.23 million and pushed it through Lido’s withdrawal system.

Source: ScamSniffer

The hacker also drained the traders’ smaller amounts of tokenized wrapped Bitcoin in eleven transfers; each round theysent about 1.93 units, which later added up to thousands of dollars. Scam Sniffer later revealed that an accomplice converted the stolen stETH into different assets, includingsome pending withdrawals and ETH spread across other blockchains.

Web3 Antivirusalso noted that the trader had been using a wallet with built-in protections, butyet, those measures were notable to protect him from the theft.

Also Read: World Liberty Financial Targets $0.24 After Buyback Plan Approval