A recent phishing attack on the Blast network led to significant losses for a major investor, losing around $35 million in fwDETH tokens.

What Happened?

A phishing attack on the Blast network resulted in a major loss for a crypto whale, who lost approximately $35 million in fwDETH tokens. The incident was initially detected by Scam Sniffer and confirmed by security firms PeckShield and BlockSec. The victim inadvertently signed a fraudulent 'permit', allowing attackers to access the wallet's funds.

Phishing Attack Mechanism

Experts explained that the phishing scheme involved deceiving the investor into signing an offline permit message, common in DeFi to authorize token transfers without revealing private keys. Once signed, the attacker exploited this permit to steal the fwDETH tokens.

Market Implications

The attack caused a sharp decline in the prices of DETH and fwDETH tokens. DETH's price dropped over 38%, while fwDETH's plummeted by 90% from $2,000 to $100 before partially recovering to $1,000. These events underscored security issues in the crypto market, particularly for large investors with substantial holdings.

The incident highlights vulnerabilities in decentralized finance security systems, emphasizing the need for increased asset protection in cryptocurrencies.