CipherTrace warns of an increase in wallet fraud MetaMask
The company CipherTrace issued a warning about the growth of fraud using extensions for the Google Chrome browser, masquerading as the cryptocurrency wallet MetaMask.
In his warning, CipherTrace writes that over the past 24 hours, “the number of complaints and comments about the loss of digital assets” has increased significantly after the installation of a fraudulent wallet.
The cryptocurrency community criticized the MetaMask, saying that the company was not making enough efforts to combat fake wallets. To which MetaMask Product Director Jacob Cantele asked the community for advice:
“What can we improve? We have warnings in our wallet, we have a detector of fraudulent sites that warns of tens of thousands of such sites, we regularly launch marketing campaigns. “
Fraudulent sites and extensions work quite easily. The user enters such a site, completely copying the view of the site MetaMask, establishes a fake extension and introduces a code phrase from the wallet. Attackers use a password to output tokens.
To protect against fraud, computer security experts advise installing extensions either from the official MetaMask website or from the official Google Chrome extension store. In case of doubt, you can check the legitimacy of the site through the portal CryptoScamDB.
Purse MetaMask is one of the most popular purses for Efirium. Thanks to the growth of the industry DeFi the number of MetaMask users exceeded 1 million.
The decentralized financing project Compounder Finance ceased to exist – its founders raised $10.8 million, after which they disappeared with user money.
Compounder Finance is a clone of Harvest and Yearn.Finance projects created by anonymous developers. It seems that the creators of the project decided that they had raised enough client funds and carried out exit visits. They withdrew $750 000 in WBTC tokens, $4.8 million in ETH, $5 million in DAI stablecoins and small amounts in various tokens.
According to Robert Leshner, founder of the Compound Finance project, in this case, not hackers or programmer flaws are to blame – this is an obvious fraud. Developers have placed a function in the code of smart contracts that allows you to completely withdraw funds from the project. Such a function should not be in any of the present decentralized funding projects.
Interestingly, it took less than a month to collect more than $10 million in client funds from the founders of Compounder Finance – the project’s smart contracts were launched on November 10. Now investors are looking for ways to legally prosecute the organizers of the fraudulent scheme, but this is difficult, because the developers of Compounder Finance were anonymous. One investor said he lost $1 million in this project and offered $50 000 for information about developers.
