Victim Recovers Stolen Crypto Funds Following Phishing Attack From 1 Year Ago

A victim of a $24 million phishing attack has received a partial refund after the perpetrator voluntarily returned some of the stolen funds.

According to Scam Sniffer, a web3 anti-scam solution, the attacker sent back $9.3 million to the victim. The theft occurred in late 2023, involving 9,579 Lido Staked Ether (stETH) and 4,850 Rocket Pool (rETH) tokens.

💰 The scammer returned $9.27M in DAI to the victim.

(credits: @bax1337) https://t.co/xwSASQOUis pic.twitter.com/T5vF1Ak3wo

— Scam Sniffer | Web3 Anti-Scam (@realScamSniffer) July 13, 2024

The victim fell prey to the attack by approving “Increase Allowance” transactions during the phishing incident, a common tactic used to gain control over assets within a wallet.

This vulnerability, particularly with ERC-20 tokens, allows bad actors to exploit users through malicious smart contracts. The attacker, using the Railgun privacy protocol, obscured the returned funds, totaling 38.84% of the stolen amount.

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Despite rare instances of funds being returned by attackers, phishing scams remain a significant issue in the crypto industry, with losses exceeding $290 million reported by Scam Sniffer in 2023 alone.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.