In a discouraging turn of events for one Chainlink (LINK) holder, a devastating phishing attack has resulted in the loss of a staggering $4.66 million in cryptocurrency. Lookonchain, a prominent data analytics company, brought the incident to light through a tweet. describing the unfortunate event that occurred to a holder who saw 275,700 LINK tokens, equivalent to $4.42 million, disappear in a clever phishing attack.
In a discouraging turn of events for one Chainlink (LINK) holder, a devastating phishing attack has resulted in the loss of a staggering $4.66 million in cryptocurrency. Lookonchain, a prominent data analytics company, brought the incident to light through a tweet. describing the unfortunate event that occurred to a holder who saw 275,700 LINK tokens, equivalent to $4.42 million, disappear in a clever phishing attack.
The victim had meticulously accumulated 290,750 LINK tokens, valued at $2.26 million, trading on various exchanges between June 7, 2022 and October 14, 2023. This savvy investor had managed to amass a profit of almost $2.4 million dollars, given favorable market conditions. However, the windfall turned into a nightmare when the individual inadvertently clicked on a phishing link and unknowingly approved a transaction.
Lookonchain’s tweet succinctly summed up the seriousness of the situation, stating that, unfortunately, the LINK holder had accidentally clicked on the phishing link and had been tricked into signing the approval transaction. In the end, it was reported that the person lost a profit of $2.4 million and a cost of $2.26 million, resulting in a total loss of $4.66 million.
Prevalence of approval phishing scams
The incident serves as a stark reminder of the dangers phishing attacks pose in the cryptocurrency space. A recent report from Chainalysis, a blockchain data platform, sheds light on the prevalence of approval phishing scams that have been used to siphon at least $1 billion in cryptocurrency since May 2021. The report highlights a worrying trend, stating that in 2022 alone, victims lost approximately 516.8 million dollars for approval phishing attacks.
This marked a significant increase over the figures recorded in 2023 through November, which amounted to $374.6 million. Approval phishing involves tricking users into approving transactions without their knowledge, resulting in unauthorized fund transfers. Cybercriminals often take advantage of human error and rely on seemingly legitimate links to carry out these attacks.
As the crypto community deals with the fallout of this high profile phishing incident, industry experts urge users to exercise caution and employ strong security measures to safeguard their digital assets. The recent Chainlink incident serves as a warning, emphasizing the need for continued education and awareness regarding the evolving tactics employed by malicious actors in the cryptocurrency landscape.