MetaMask Wallet Funds Taken anonymizeme: Difference between revisions

From Quadriga Initiative Cryptocurrency Hacks, Scams, and Frauds Repository
Jump to navigation Jump to search
No edit summary
(Another 30 minutes complete. Additional sources merged in. Prevention completed. Information moved around.)
 
Line 1: Line 1:
{{Imported Case Study 2|source=https://www.quadrigainitiative.com/casestudy/metamaskwalletfundstakenanonymizeme.php}}
{{Case Study Under Construction}}{{Unattributed Sources}}
{{Unattributed Sources}}


[[File:Metamask.jpg|thumb|MetaMask]]Reddit user anonymizeme used MyEtherWallet to set up their wallet, storing the seed phrase at the time on the Evernote cloud storage service. The seed phrase was then imported to MetaMask and wallets were generated on BNB (Binance Smart Chain) and FTM (Fantom) using the same private key.
[[File:Metamask.jpg|thumb|MetaMask Logo/Homepage]]Reddit user anonymizeme used MyEtherWallet to set up their wallet, storing the seed phrase at the time on the Evernote cloud storage service. The seed phrase was then imported to MetaMask and wallets were generated on BNB (Binance Smart Chain) and FTM (Fantom) using the same private key.


After breaching the Evernote account, most likely through finding the username and password in a previously breached database, the hacker was able to obtain the seed phrase, derive the BNB and FTM wallets, and retrieve those funds.
After breaching the Evernote account, most likely through finding the username and password in a previously breached database, the hacker was able to obtain the seed phrase, derive the BNB and FTM wallets, and retrieve those funds.
Line 10: Line 9:
Fortunately for anonymizeme, the hacker was incredible careless and brought the funds to a wallet with a KYC/account link to Binance, Houbi, and OpenSea. They don't appear to have taken any effort to obscure the funds.
Fortunately for anonymizeme, the hacker was incredible careless and brought the funds to a wallet with a KYC/account link to Binance, Houbi, and OpenSea. They don't appear to have taken any effort to obscure the funds.


As such, when the Reddit community became aware and started investigating, the thief got incredibly scared and return some BNB. Over 236 BNB was returned to the original wallet, worth $120650.30 using the closing market price on December 14th, 2021. The remaining loss to anonymizeme is $75998.85003.
As such, when the Reddit community became aware and started investigating, the thief got incredibly scared and return some BNB. Over 236 BNB was returned to the original wallet, worth $120650.30 using the closing market price on December 14th, 2021. The remaining loss to anonymizeme is $75998.85.


This is a global/international case not involving a specific country.<ref name="reddit-8914" /><ref name="bscscan-8915" /><ref name="ftmscan-8916" /><ref name="ftmscan-8917" /><ref name="bscscan-8918" /><ref name="bscscan-8919" /><ref name="bscscan-8920" /><ref name="bscscan-8921" /><ref name="bscscan-8922" /><ref name="bscscan-8923" /><ref name="bscscan-8924" /><ref name="bscscan-8925" /><ref name="bscscan-8926" /><ref name="bscscan-8927" /><ref name="bscscan-8928" /><ref name="unnamed-8929" /><ref name="hecoinfo-8930" /><ref name="bscscan-8931" /><ref name="bscscan-8932" /><ref name="bscscan-8933" /><ref name="bscscan-8934" /><ref name="bscscan-8935" /><ref name="ftmscan-8936" /><ref name="ftmscan-8937" /><ref name="ftmscan-8938" /><ref name="ftmscan-8939" /><ref name="ftmscan-8940" /><ref name="ftmscan-8941" /><ref name="coinmarketcap-6470" /><ref name="coinmarketcap-8942" /><ref name="coinmarketcap-8943" /><ref name="coinmarketcap-8944" /><ref name="coinmarketcap-4651" /><ref name="metamask-6871" /><ref name="reddit-8945" /><ref name="unnamed-11367" /><ref name="unnamed-11368" /><ref name="unnamed-11369" /><ref name="unnamed-11370" /><ref name="unnamed-11371" />
This is a global/international case not involving a specific country.<ref name="reddit-8914" /><ref name="unnamed-8929" /><ref name="coinmarketcap-6470" /><ref name="coinmarketcap-8942" /><ref name="coinmarketcap-8943" /><ref name="coinmarketcap-8944" /><ref name="coinmarketcap-4651" /><ref name="metamask-6871" /><ref name="reddit-8945" /><ref name="unnamed-11367" /><ref name="unnamed-11368" /><ref name="unnamed-11369" />
 
== About anonymizeme ==
"Mac." "I stupidly did not" "have [my MetaMask] linked to a ledger."


== About MetaMask ==
== About MetaMask ==
"It was Metamask." "Mac." "I stupidly did not" "have [my MetaMask] linked to a ledger."
MetaMask is a "crypto wallet & gateway to blockchain apps. Start exploring blockchain applications in seconds. Trusted by over 21 million users worldwide." "Available as a browser extension and as a mobile app, MetaMask equips you with a key vault, secure login, token wallet, and token exchange—everything you need to manage your digital assets."


MetaMask is a "crypto wallet & gateway to blockchain apps. Start exploring blockchain applications in seconds. Trusted by over 21 million users worldwide." "Available as a browser extension and as a mobile app, MetaMask equips you with a key vault, secure login, token wallet, and token exchange—everything you need to manage your digital assets."
== The Reality ==
Blockchain transactions are irreversible.


== What Happened ==
"My wallet has been hacked- it's adding up to about a $175k loss (not including appreciation later)... trying to figure out how they got access, but is there anyway to track this person down?"
"My wallet has been hacked- it's adding up to about a $175k loss (not including appreciation later)... trying to figure out how they got access, but is there anyway to track this person down?"


"I'm not sure - I got an email saying an Android logged into my Evernote. I immediately started moving stuff but didn't realize MEW was connected to BNB. I now have 2FA on Evernote too - didn't realize that was an option." "I checked the IP and it looked like a spoofed one."
{| class="wikitable"
|+Key Event Timeline - MetaMask Wallet Funds Taken anonymizeme
!Date
!Event
!Description
|-
|December 14th, 2021 3:52:44 AM MST
|Main Event
|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
|-
|
|
|
|}
 
== Technical Details ==
 
 
Blockchain Transactions/Wallets:
 
BNB: <ref name="bscscan-8915" /><ref name="bscscan-8918" /><ref name="bscscan-8919" /><ref name="bscscan-8920" /><ref name="bscscan-8921" /><ref name="bscscan-8922" /><ref name="bscscan-8923" /><ref name="bscscan-8924" /><ref name="bscscan-8925" /><ref name="bscscan-8926" /><ref name="bscscan-8927" /><ref name="bscscan-8928" /><ref name="bscscan-8931" /><ref name="bscscan-8932" /><ref name="bscscan-8933" /><ref name="bscscan-8934" /><ref name="bscscan-8935" /><ref>https://bscscan.com/txs?a=0x68f97404eaabb8e401b2d87f6a44e106da5b0356 (Sep 6, 2023)</ref>
 
Fantom: <ref name="ftmscan-8916" /><ref name="ftmscan-8917" /><ref name="ftmscan-8936" /><ref name="ftmscan-8937" /><ref name="ftmscan-8938" /><ref name="ftmscan-8939" /><ref name="ftmscan-8940" /><ref name="ftmscan-8941" />
 
Other: <ref name="hecoinfo-8930" />
 
 
<ref name="unnamed-11370" /><ref name="unnamed-11371" />


"They got access to my Evernote which had MyEtherWallet details on it. I caught it and immediately transferred all my ETH funds, but they somehow got to BNB which isn't even supported on MyEtherWallet."


"If they got your 12 word seed phrase or the private keys, those unlock all the other compatible chains. I'm not sure how it works on MEW, but I assume it's similar to MetaMask."
"If they got your 12 word seed phrase or the private keys, those unlock all the other compatible chains. I'm not sure how it works on MEW, but I assume it's similar to MetaMask."


"So, I connected MEW to MetaMask. I thought that was Ethereum network only. From there, I opened up other networks - BNB, AVAX, etc, and thought that was different than the original MEW."
"So, I connected MEW to MetaMask. I thought that was Ethereum network only. From there, I opened up other networks - BNB, AVAX, etc, and thought that was different than the original MEW."
"From evernote they got seed From seed they got both pvt key and public key They check etherscan/bscscan etc for assets related to public key. Since they have pvt key they can drain them all!"
"Hardware wallet won't save you if you keep your seeds in Evernote and if understood correctly that's how OP's funds were stolen." "It wouldn’t have helped in this case because OP got hacked because he was storing his private keys in Evernote which had 3 security breaches in the past 2 years. A hardware wallet is useless if you’re just going to throw your private keys on the cloud anyway."
== Total Amount Lost ==
"My wallet has been hacked- it's adding up to about a $175k loss (not including appreciation later)... trying to figure out how they got access, but is there anyway to track this person down?"
The total amount lost has been estimated at $197,000 USD.
== Immediate Reactions ==
"I cried in the middle of Starbucks, called myself a million names, then realized I had to keep it moving. I'm trying to recover the funds..."
"I'm not sure - I got an email saying an Android logged into my Evernote. I immediately started moving stuff but didn't realize MEW was connected to BNB. I now have 2FA on Evernote too - didn't realize that was an option." "I checked the IP and it looked like a spoofed one."
"They got access to my Evernote which had MyEtherWallet details on it. I caught it and immediately transferred all my ETH funds, but they somehow got to BNB which isn't even supported on MyEtherWallet."


"Well, I didn't realize it and didn't think MEW connected to BNB. I caught it and moved my ETH stuff immediately. But yes - highly stupid me."
"Well, I didn't realize it and didn't think MEW connected to BNB. I caught it and moved my ETH stuff immediately. But yes - highly stupid me."


"From evernote they got seed From seed they got both pvt key and public key They check etherscan/bscscan etc for assets related to public key. Since they have pvt key they can drain them all!"


"From what I've seen in other comments, OP had 175k worth of crypto stored in a Metamask wallet, where the seed phrase was stored online via Evernote. Probably had their Evernote credentials leaked in one of the various data leaks, an attacker gained access to their Evernote account and hence their Metamask seed phrase, and then gained access to their crypto."
"From what I've seen in other comments, OP had 175k worth of crypto stored in a Metamask wallet, where the seed phrase was stored online via Evernote. Probably had their Evernote credentials leaked in one of the various data leaks, an attacker gained access to their Evernote account and hence their Metamask seed phrase, and then gained access to their crypto."


"Hardware wallet won't save you if you keep your seeds in Evernote and if understood correctly that's how OP's funds were stolen." "It wouldn’t have helped in this case because OP got hacked because he was storing his private keys in Evernote which had 3 security breaches in the past 2 years. A hardware wallet is useless if you’re just going to throw your private keys on the cloud anyway."


"[I] was thinking it was a malicious smart contract. That's even worse...175k pasted on Evernote...ffs might as well put there their bank details and pin."
"[I] was thinking it was a malicious smart contract. That's even worse...175k pasted on Evernote...ffs might as well put there their bank details and pin."
Line 41: Line 93:
"[I]f the contract created is malicious, it's written to drain funds when you sign it from your hardware wallet then you're screwed. So you need to always be certain what transaction you are signing is in fact what you want and coming from a legit (non phished) website."
"[I]f the contract created is malicious, it's written to drain funds when you sign it from your hardware wallet then you're screwed. So you need to always be certain what transaction you are signing is in fact what you want and coming from a legit (non phished) website."


"I cried in the middle of Starbucks, called myself a million names, then realized I had to keep it moving. I'm trying to recover the funds..."


"Thanks for the empathy. I know I was stupid. I was staking and didn't think I could do it with a BNB wallet. Lesson sadly learned."
"Thanks for the empathy. I know I was stupid. I was staking and didn't think I could do it with a BNB wallet. Lesson sadly learned."
== Ultimate Outcome ==


"Your money is still on scammers wallet. Keep track of their transactions. If they try to move them to a CEX, you can get it back. If someone has the time to go through this wallet's old tx, there may be a lead somewhere."
"Your money is still on scammers wallet. Keep track of their transactions. If they try to move them to a CEX, you can get it back. If someone has the time to go through this wallet's old tx, there may be a lead somewhere."
Line 50: Line 106:


"Make sure to contact [B]inance[. P]rovide them with this information and when he tries to cash out via [B]inance they will freeze hes assets until you make a claim with the authorities, hope you all the best."
"Make sure to contact [B]inance[. P]rovide them with this information and when he tries to cash out via [B]inance they will freeze hes assets until you make a claim with the authorities, hope you all the best."


"I beli[e]ve I found the Third wallet from the hacker also KYC with [B]inance and tied to the other 2 wallets on multiple oc[c]asions and multiple timeframes (means wasnt just a poor guy who got hacked and drained)."
"I beli[e]ve I found the Third wallet from the hacker also KYC with [B]inance and tied to the other 2 wallets on multiple oc[c]asions and multiple timeframes (means wasnt just a poor guy who got hacked and drained)."


There's a "transfer from [the] third wallet to [the] second wallet (second wallet is KYC wallet that funded the wallet that holds the stolen funds)."
There's a "transfer from [the] third wallet to [the] second wallet (second wallet is KYC wallet that funded the wallet that holds the stolen funds)."
"This basicly proves that the hacker owns the 3 wallets because he[']s just sending multiple transactions over the 3 wallets on different time dates, 2 wallets are KYC (binance can check if its the same person)."


"This basicly proves that the hacker owns the 3 wallets because he[']s just sending multiple transactions over the 3 wallets on different time dates, 2 wallets are KYC (binance can check if its the same person)."
"This basicly proves that the hacker owns the 3 wallets because he[']s just sending multiple transactions over the 3 wallets on different time dates, 2 wallets are KYC (binance can check if its the same person)."
Line 69: Line 127:
"BUT HE GAVE ME THE BULK BACK!! THANK YOU SO MUCH!!!!!!"
"BUT HE GAVE ME THE BULK BACK!! THANK YOU SO MUCH!!!!!!"


"OP, if you have the funds back in your wallet you need to move them out of that compromised address right now! Create a new wallet and do that ASAP. Congrats on getting it back!!"


This is a global/international case not involving a specific country.
<ref name="unnamed-11369" />


The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.
"Praying for you OP! You've got a hell of a community here helping you out, let's get this [scamm]er!"


Include:
<ref name="unnamed-11370" />


* Known history of when and how the service was started.
"OP, if you have the funds back in your wallet you need to move them out of that compromised address right now! Create a new wallet and do that ASAP. Congrats on getting it back!!"
* What problems does the company or service claim to solve?
* What marketing materials were used by the firm or business?
* Audits performed, and excerpts that may have been included.
* Business registration documents shown (fake or legitimate).
* How were people recruited to participate?
* Public warnings and announcements prior to the event.


Don't Include:
== Total Amount Recovered ==
* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
The attacker ultimately returned a portion of the stolen funds after community investigation showed they were linked to KYC accounts on multiple exchanges.
* Anything that wasn't reasonably knowable at the time of the event.
There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.


== The Reality ==
The total amount recovered has been estimated at $121,000 USD.
This sections is included if a case involved deception or information that was unknown at the time. Examples include:


* When the service was actually started (if different than the "official story").
== Ongoing Developments ==
* Who actually ran a service and their own personal history.
TBD
* How the service was structured behind the scenes. (For example, there was no "trading bot".)
== Individual Prevention Policies ==
* Details of what audits reported and how vulnerabilities were missed during auditing.
The primary failure was storing a seed phrase online. Additional failures were also reusing passwords across websites and storing most funds in the same active wallet.


== What Happened ==
The best practice is to keep the majority of funds offline in a newly generated wallet which has never been online. All copies of the seed phrase or private key should be stored physically offline and never backed up online. Only bring funds to an online active wallet when performing a specific transaction, and return them offline as soon as possible.
The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.
{| class="wikitable"
|+Key Event Timeline - MetaMask Wallet Funds Taken anonymizeme
!Date
!Event
!Description
|-
|December 14th, 2021 3:52:44 AM MST
|Main Event
|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
|-
|
|
|
|}


== Technical Details ==
{{Prevention:Individuals:Store Funds Offline}}
This section includes specific detailed technical analysis of any security breaches which happened. What specific software vulnerabilities contributed to the problem and how were they exploited?


== Total Amount Lost ==
{{Prevention:Individuals:Never Share Private Keys}}
The total amount lost has been estimated at $197,000 USD.


How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?
{{Prevention:Individuals:End}}


== Immediate Reactions ==
== Platform Prevention Policies ==
How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?
While in this case, a large portion of the lost funds were recoverable, a more sophisticated attacker could have better covered their tracks through privacy protocols and coins. It is therefore critical that users know how to protect themselves and prevent incidents from happening.


== Ultimate Outcome ==
{{Prevention:Platforms:Cryptocurrency Safety Quiz}}
What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?


== Total Amount Recovered ==
An industry insurance fund can be set up to assist victims. While the amount of relief provided is discretionary, payouts could happen much faster and more information could be gathered on the crime.
The total amount recovered has been estimated at $121,000 USD.


What funds were recovered? What funds were reimbursed for those affected users?
{{Prevention:Platforms:Establish Industry Insurance Fund}}


== Ongoing Developments ==
{{Prevention:Platforms:End}}
What parts of this case are still remaining to be concluded?
== General Prevention Policies ==
The primary failure was storing a seed phrase online. Additional failures were also reusing passwords across websites and storing most funds in the same active wallet.


The best practice is to keep the majority of funds offline in a newly generated wallet which has never been online. All copies of the seed phrase or private key should be stored physically offline and never backed up online. Only bring funds to an online active wallet when performing a specific transaction, and return them offline as soon as possible.
== Regulatory Prevention Policies ==
== Individual Prevention Policies ==
While in this case, a large portion of the lost funds were recoverable, a more sophisticated attacker could have better covered their tracks through privacy protocols and coins. It is therefore critical that users know how to protect themselves and prevent incidents from happening.
{{Prevention:Individuals:Placeholder}}


{{Prevention:Individuals:End}}
{{Prevention:Regulators:Cryptocurrency Education Mandate}}


== Platform Prevention Policies ==
An industry insurance fund can be set up to assist victims. While the amount of relief provided is discretionary, payouts could happen much faster and more information could be gathered on the crime.
{{Prevention:Platforms:Placeholder}}


{{Prevention:Platforms:End}}
{{Prevention:Regulators:Establish Industry Insurance Fund}}
 
== Regulatory Prevention Policies ==
{{Prevention:Regulators:Placeholder}}


{{Prevention:Regulators:End}}
{{Prevention:Regulators:End}}


== References ==
== References ==
<references><ref name="reddit-8914">[https://www.reddit.com/r/CryptoCurrency/comments/rgck4r/got_hacked_for_about_175k_is_there_any_recourse/ Got hacked for about $175k - is there any recourse? : CryptoCurrency] (Jul 3, 2022)</ref>
<references>
 
<ref name="reddit-8914">[https://www.reddit.com/r/CryptoCurrency/comments/rgck4r/got_hacked_for_about_175k_is_there_any_recourse/ Got hacked for about $175k - is there any recourse? : CryptoCurrency] (Jul 3, 2022)</ref>
<ref name="bscscan-8915">[https://bscscan.com/address/0xd7c83309c6025ecdd974fc824117ea0688baf037 https://bscscan.com/address/0xd7c83309c6025ecdd974fc824117ea0688baf037] (Aug 24, 2022)</ref>
<ref name="bscscan-8915">https://bscscan.com/address/0xd7c83309c6025ecdd974fc824117ea0688baf037 (Aug 24, 2022)</ref>
 
<ref name="ftmscan-8916">[https://ftmscan.com/address/0xd7c83309c6025ecdd974fc824117ea0688baf037 Address 0xd7c83309c6025ecdd974fc824117ea0688baf037 | FtmScan] (Aug 24, 2022)</ref>
<ref name="ftmscan-8916">[https://ftmscan.com/address/0xd7c83309c6025ecdd974fc824117ea0688baf037 Address 0xd7c83309c6025ecdd974fc824117ea0688baf037 | FtmScan] (Aug 24, 2022)</ref>
<ref name="ftmscan-8917">[https://ftmscan.com/tx/0xc553bbc9c2950fcfb99668f8cae40ff3edf29813e6a5d1b4509cedd1ccbc2503 Fantom Transaction Hash (Txhash) Details | FtmScan] (Aug 25, 2022)</ref>
<ref name="ftmscan-8917">[https://ftmscan.com/tx/0xc553bbc9c2950fcfb99668f8cae40ff3edf29813e6a5d1b4509cedd1ccbc2503 Fantom Transaction Hash (Txhash) Details | FtmScan] (Aug 25, 2022)</ref>
 
<ref name="bscscan-8918">https://bscscan.com/tx/0x278dde93845696d3d2b2d2ac602b16bcc688f651ad7859ae8b79991064cf5655 (Aug 25, 2022)</ref>
<ref name="bscscan-8918">[https://bscscan.com/tx/0x278dde93845696d3d2b2d2ac602b16bcc688f651ad7859ae8b79991064cf5655 https://bscscan.com/tx/0x278dde93845696d3d2b2d2ac602b16bcc688f651ad7859ae8b79991064cf5655] (Aug 25, 2022)</ref>
<ref name="bscscan-8919">https://bscscan.com/address/0x46f321cd443c781e7283aa843bad7c67f98e72a2 (Aug 25, 2022)</ref>
 
<ref name="bscscan-8920">https://bscscan.com/tx/0xf96f8121c0acdde89d1e460a21d871d74ae38270db96727d1bcd31c75c2f06ec (Aug 25, 2022)</ref>
<ref name="bscscan-8919">[https://bscscan.com/address/0x46f321cd443c781e7283aa843bad7c67f98e72a2 https://bscscan.com/address/0x46f321cd443c781e7283aa843bad7c67f98e72a2] (Aug 25, 2022)</ref>
<ref name="bscscan-8921">https://bscscan.com/address/0x68f97404eaabb8e401b2d87f6a44e106da5b0356 (Aug 25, 2022)</ref>
 
<ref name="bscscan-8922">https://bscscan.com/tx/0x7464ebc70413b320aa140600c5d722b77f992db63bb6caf50e8b7434adbd486e (Aug 25, 2022)</ref>
<ref name="bscscan-8920">[https://bscscan.com/tx/0xf96f8121c0acdde89d1e460a21d871d74ae38270db96727d1bcd31c75c2f06ec https://bscscan.com/tx/0xf96f8121c0acdde89d1e460a21d871d74ae38270db96727d1bcd31c75c2f06ec] (Aug 25, 2022)</ref>
<ref name="bscscan-8923">https://bscscan.com/tx/0x75a0a99e5e5b2ae6d0623844ec4f3af5dc82a2a7892a1a1675efd1ec3b4f2440 (Aug 25, 2022)</ref>
 
<ref name="bscscan-8924">https://bscscan.com/tx/0x6e9a8d4b9e6a6b31277cabae816b213d0f614a7c5f302f8446ba86ef0c1ecc38 (Aug 25, 2022)</ref>
<ref name="bscscan-8921">[https://bscscan.com/address/0x68f97404eaabb8e401b2d87f6a44e106da5b0356 https://bscscan.com/address/0x68f97404eaabb8e401b2d87f6a44e106da5b0356] (Aug 25, 2022)</ref>
<ref name="bscscan-8925">https://bscscan.com/tx/0x9a9dcc9a791c0ebbe81f5c20ffd850268a36e06ccf66461bdccdd0681fb690e1 (Aug 25, 2022)</ref>
 
<ref name="bscscan-8926">https://bscscan.com/address/0x8f15e039fe4d9721cd843a5f101c16012dff3db9 (Aug 25, 2022)</ref>
<ref name="bscscan-8922">[https://bscscan.com/tx/0x7464ebc70413b320aa140600c5d722b77f992db63bb6caf50e8b7434adbd486e https://bscscan.com/tx/0x7464ebc70413b320aa140600c5d722b77f992db63bb6caf50e8b7434adbd486e] (Aug 25, 2022)</ref>
<ref name="bscscan-8927">https://bscscan.com/tx/0x37df4e22c40d47d3063e949bd51b15ce8ecbd9211eadedb340771d444356d62c (Aug 25, 2022)</ref>
 
<ref name="bscscan-8928">https://bscscan.com/tx/0x5e198098fa50f8761ffb57a8f831b8e8665c29542f82422a744155db4ee3e259 (Aug 25, 2022)</ref>
<ref name="bscscan-8923">[https://bscscan.com/tx/0x75a0a99e5e5b2ae6d0623844ec4f3af5dc82a2a7892a1a1675efd1ec3b4f2440 https://bscscan.com/tx/0x75a0a99e5e5b2ae6d0623844ec4f3af5dc82a2a7892a1a1675efd1ec3b4f2440] (Aug 25, 2022)</ref>
 
<ref name="bscscan-8924">[https://bscscan.com/tx/0x6e9a8d4b9e6a6b31277cabae816b213d0f614a7c5f302f8446ba86ef0c1ecc38 https://bscscan.com/tx/0x6e9a8d4b9e6a6b31277cabae816b213d0f614a7c5f302f8446ba86ef0c1ecc38] (Aug 25, 2022)</ref>
 
<ref name="bscscan-8925">[https://bscscan.com/tx/0x9a9dcc9a791c0ebbe81f5c20ffd850268a36e06ccf66461bdccdd0681fb690e1 https://bscscan.com/tx/0x9a9dcc9a791c0ebbe81f5c20ffd850268a36e06ccf66461bdccdd0681fb690e1] (Aug 25, 2022)</ref>
 
<ref name="bscscan-8926">[https://bscscan.com/address/0x8f15e039fe4d9721cd843a5f101c16012dff3db9 https://bscscan.com/address/0x8f15e039fe4d9721cd843a5f101c16012dff3db9] (Aug 25, 2022)</ref>
 
<ref name="bscscan-8927">[https://bscscan.com/tx/0x37df4e22c40d47d3063e949bd51b15ce8ecbd9211eadedb340771d444356d62c https://bscscan.com/tx/0x37df4e22c40d47d3063e949bd51b15ce8ecbd9211eadedb340771d444356d62c] (Aug 25, 2022)</ref>
 
<ref name="bscscan-8928">[https://bscscan.com/tx/0x5e198098fa50f8761ffb57a8f831b8e8665c29542f82422a744155db4ee3e259 https://bscscan.com/tx/0x5e198098fa50f8761ffb57a8f831b8e8665c29542f82422a744155db4ee3e259] (Aug 25, 2022)</ref>
 
<ref name="unnamed-8929">[https://old.reddit.com/r/CryptoCurrency/comments/rgck4r/got_hacked_for_about_175k_is_there_any_recourse/hojt7vn/ anonymizeme comments on Got hacked for about $175k - is there any recourse?] (Aug 25, 2022)</ref>
<ref name="unnamed-8929">[https://old.reddit.com/r/CryptoCurrency/comments/rgck4r/got_hacked_for_about_175k_is_there_any_recourse/hojt7vn/ anonymizeme comments on Got hacked for about $175k - is there any recourse?] (Aug 25, 2022)</ref>
 
<ref name="hecoinfo-8930">https://hecoinfo.com/address/0x46f321cd443c781e7283aa843bad7c67f98e72a2 (Aug 25, 2022)</ref>
<ref name="hecoinfo-8930">[https://hecoinfo.com/address/0x46f321cd443c781e7283aa843bad7c67f98e72a2 https://hecoinfo.com/address/0x46f321cd443c781e7283aa843bad7c67f98e72a2] (Aug 25, 2022)</ref>
<ref name="bscscan-8931">https://bscscan.com/tx/0x56f9029913631870e107a3603980b1cd73b6d90a8d2d433ac385d7f6dc95166e (Aug 25, 2022)</ref>
 
<ref name="bscscan-8932">https://bscscan.com/tx/0x6b399b3b566018262b367e8477fb2223be6f5cb4ede6ea74d9f7efcb80a9539a (Aug 25, 2022)</ref>
<ref name="bscscan-8931">[https://bscscan.com/tx/0x56f9029913631870e107a3603980b1cd73b6d90a8d2d433ac385d7f6dc95166e https://bscscan.com/tx/0x56f9029913631870e107a3603980b1cd73b6d90a8d2d433ac385d7f6dc95166e] (Aug 25, 2022)</ref>
<ref name="bscscan-8933">https://bscscan.com/tx/0x1681d4df9115db05d81ed0047e59e752126627ccd385cec0553d14479cfe8883 (Aug 25, 2022)</ref>
 
<ref name="bscscan-8934">https://bscscan.com/tx/0x981aef4570423c8dc86dd60b3761d9f969c5da1f46d475602efee1b7dffe2541 (Aug 25, 2022)</ref>
<ref name="bscscan-8932">[https://bscscan.com/tx/0x6b399b3b566018262b367e8477fb2223be6f5cb4ede6ea74d9f7efcb80a9539a https://bscscan.com/tx/0x6b399b3b566018262b367e8477fb2223be6f5cb4ede6ea74d9f7efcb80a9539a] (Aug 25, 2022)</ref>
<ref name="bscscan-8935">https://bscscan.com/tx/0x47142ed2e09f38f6d33c8454d3f9605618d8261236f54d1c84d13452504eb10d (Aug 25, 2022)</ref>
 
<ref name="bscscan-8933">[https://bscscan.com/tx/0x1681d4df9115db05d81ed0047e59e752126627ccd385cec0553d14479cfe8883 https://bscscan.com/tx/0x1681d4df9115db05d81ed0047e59e752126627ccd385cec0553d14479cfe8883] (Aug 25, 2022)</ref>
 
<ref name="bscscan-8934">[https://bscscan.com/tx/0x981aef4570423c8dc86dd60b3761d9f969c5da1f46d475602efee1b7dffe2541 https://bscscan.com/tx/0x981aef4570423c8dc86dd60b3761d9f969c5da1f46d475602efee1b7dffe2541] (Aug 25, 2022)</ref>
 
<ref name="bscscan-8935">[https://bscscan.com/tx/0x47142ed2e09f38f6d33c8454d3f9605618d8261236f54d1c84d13452504eb10d https://bscscan.com/tx/0x47142ed2e09f38f6d33c8454d3f9605618d8261236f54d1c84d13452504eb10d] (Aug 25, 2022)</ref>
 
<ref name="ftmscan-8936">[https://ftmscan.com/tx/0x2c04ffadc37a515f4314112c8408563ae680cb9e9553daad40cdcd85bb472b1f Fantom Transaction Hash (Txhash) Details | FtmScan] (Aug 25, 2022)</ref>
<ref name="ftmscan-8936">[https://ftmscan.com/tx/0x2c04ffadc37a515f4314112c8408563ae680cb9e9553daad40cdcd85bb472b1f Fantom Transaction Hash (Txhash) Details | FtmScan] (Aug 25, 2022)</ref>
<ref name="ftmscan-8937">[https://ftmscan.com/tx/0x830a671d496f70f804f22ac2e2907eb242c3fe56ed928964fa6e506a26c721f1 Fantom Transaction Hash (Txhash) Details | FtmScan] (Aug 25, 2022)</ref>
<ref name="ftmscan-8937">[https://ftmscan.com/tx/0x830a671d496f70f804f22ac2e2907eb242c3fe56ed928964fa6e506a26c721f1 Fantom Transaction Hash (Txhash) Details | FtmScan] (Aug 25, 2022)</ref>
<ref name="ftmscan-8938">[https://ftmscan.com/tx/0x776ed171b3f5100de44a946e64485d0d070fa16c0ad273ee4eb332a55ba92e30 Fantom Transaction Hash (Txhash) Details | FtmScan] (Aug 25, 2022)</ref>
<ref name="ftmscan-8938">[https://ftmscan.com/tx/0x776ed171b3f5100de44a946e64485d0d070fa16c0ad273ee4eb332a55ba92e30 Fantom Transaction Hash (Txhash) Details | FtmScan] (Aug 25, 2022)</ref>
<ref name="ftmscan-8939">[https://ftmscan.com/tx/0x20e91bc8e37e16c0625e0f1d469defd9e2769aa8d9b5b9cedf1256783cb89c1b Fantom Transaction Hash (Txhash) Details | FtmScan] (Aug 25, 2022)</ref>
<ref name="ftmscan-8939">[https://ftmscan.com/tx/0x20e91bc8e37e16c0625e0f1d469defd9e2769aa8d9b5b9cedf1256783cb89c1b Fantom Transaction Hash (Txhash) Details | FtmScan] (Aug 25, 2022)</ref>
<ref name="ftmscan-8940">[https://ftmscan.com/tx/0x83cec7c46361cca6fa4f9e26e0c3d9433aabbb215c0bb744aad8bc0494c3eecc Fantom Transaction Hash (Txhash) Details | FtmScan] (Aug 25, 2022)</ref>
<ref name="ftmscan-8940">[https://ftmscan.com/tx/0x83cec7c46361cca6fa4f9e26e0c3d9433aabbb215c0bb744aad8bc0494c3eecc Fantom Transaction Hash (Txhash) Details | FtmScan] (Aug 25, 2022)</ref>
<ref name="ftmscan-8941">[https://ftmscan.com/tx/0x61ec9b75f6ea5331e93d9a221bc072b93e75c8c568f23f7f0e0fb0322cd144c2 Fantom Transaction Hash (Txhash) Details | FtmScan] (Aug 25, 2022)</ref>
<ref name="ftmscan-8941">[https://ftmscan.com/tx/0x61ec9b75f6ea5331e93d9a221bc072b93e75c8c568f23f7f0e0fb0322cd144c2 Fantom Transaction Hash (Txhash) Details | FtmScan] (Aug 25, 2022)</ref>
 
<ref name="coinmarketcap-6470">https://coinmarketcap.com/currencies/bnb/historical-data/ (Feb 15, 2022)</ref>
<ref name="coinmarketcap-6470">[https://coinmarketcap.com/currencies/bnb/historical-data/ https://coinmarketcap.com/currencies/bnb/historical-data/] (Feb 15, 2022)</ref>
<ref name="coinmarketcap-8942">https://coinmarketcap.com/currencies/fantom/historical-data/ (Aug 25, 2022)</ref>
 
<ref name="coinmarketcap-8943">https://coinmarketcap.com/currencies/knightswap/historical-data/ (Aug 25, 2022)</ref>
<ref name="coinmarketcap-8942">[https://coinmarketcap.com/currencies/fantom/historical-data/ https://coinmarketcap.com/currencies/fantom/historical-data/] (Aug 25, 2022)</ref>
<ref name="coinmarketcap-8944">https://coinmarketcap.com/currencies/undead-finance/historical-data/ (Aug 25, 2022)</ref>
 
<ref name="coinmarketcap-4651">https://coinmarketcap.com/currencies/ethereum/historical-data/ (Dec 21, 2021)</ref>
<ref name="coinmarketcap-8943">[https://coinmarketcap.com/currencies/knightswap/historical-data/ https://coinmarketcap.com/currencies/knightswap/historical-data/] (Aug 25, 2022)</ref>
<ref name="metamask-6871">https://metamask.io/ (Mar 6, 2022)</ref>
 
<ref name="coinmarketcap-8944">[https://coinmarketcap.com/currencies/undead-finance/historical-data/ https://coinmarketcap.com/currencies/undead-finance/historical-data/] (Aug 25, 2022)</ref>
 
<ref name="coinmarketcap-4651">[https://coinmarketcap.com/currencies/ethereum/historical-data/ https://coinmarketcap.com/currencies/ethereum/historical-data/] (Dec 21, 2021)</ref>
 
<ref name="metamask-6871">[https://metamask.io/ https://metamask.io/] (Mar 6, 2022)</ref>
 
<ref name="reddit-8945">[https://www.reddit.com/r/CryptoCurrency/comments/rgck4r/comment/hol4gqe/ Got hacked for about $175k - is there any recourse? : CryptoCurrency] (Aug 26, 2022)</ref>
<ref name="reddit-8945">[https://www.reddit.com/r/CryptoCurrency/comments/rgck4r/comment/hol4gqe/ Got hacked for about $175k - is there any recourse? : CryptoCurrency] (Aug 26, 2022)</ref>
<ref name="unnamed-11367">[https://www.reddit.com/r/CryptoCurrency/comments/rgck4r/comment/hok4zg9/ Reddit - Dive into anything] (Jul 19, 2023)</ref>
<ref name="unnamed-11367">[https://www.reddit.com/r/CryptoCurrency/comments/rgck4r/comment/hok4zg9/ Reddit - Dive into anything] (Jul 19, 2023)</ref>
<ref name="unnamed-11368">[https://www.reddit.com/r/CryptoCurrency/comments/rgck4r/comment/hord7q5/ Reddit - Dive into anything] (Jul 19, 2023)</ref>
<ref name="unnamed-11368">[https://www.reddit.com/r/CryptoCurrency/comments/rgck4r/comment/hord7q5/ Reddit - Dive into anything] (Jul 19, 2023)</ref>
 
<ref name="unnamed-11369">[https://old.reddit.com/r/CryptoCurrency/comments/rgck4r/got_hacked_for_about_175k_is_there_any_recourse/hokinag/ <nowiki>Bam607 - "Praying for you OP! You've got a hell of a community here helping you out, let's get this [scamm]er!" - Reddit</nowiki>] (Jul 19, 2023)</ref>
<ref name="unnamed-11369">[https://www.reddit.com/r/CryptoCurrency/comments/rgck4r/comment/hokinag/ Reddit - Dive into anything] (Jul 19, 2023)</ref>
<ref name="unnamed-11370">[https://old.reddit.com/r/CryptoCurrency/comments/rgck4r/got_hacked_for_about_175k_is_there_any_recourse/hok2do0/ 20pastfour - "one of the adresses he uses, he used binance to fund it, you may want to contact them for help. This hacker is not very smart lmao" - Reddit] (Jul 19, 2023)</ref>
 
<ref name="unnamed-11371">https://uploads.disquscdn.com/images/519b783f2d654d64fe0de73c30444dcbe2cf972a1c2bbe3e7585b324b04a5606.png (Oct 8, 2022)</ref>
<ref name="unnamed-11370">[https://www.reddit.com/r/CryptoCurrency/comments/rgck4r/comment/hok2do0/ Reddit - Dive into anything] (Jul 19, 2023)</ref>
</references>
 
<ref name="unnamed-11371">[https://uploads.disquscdn.com/images/519b783f2d654d64fe0de73c30444dcbe2cf972a1c2bbe3e7585b324b04a5606.png https://uploads.disquscdn.com/images/519b783f2d654d64fe0de73c30444dcbe2cf972a1c2bbe3e7585b324b04a5606.png] (Oct 8, 2022)</ref></references>

Latest revision as of 13:31, 6 September 2023

Notice: This page is a new case study and some aspects have not been fully researched. Some sections may be incomplete or reflect inaccuracies present in initial sources. Please check the References at the bottom for further information and perform your own additional assessment. Please feel free to contribute by adding any missing information or sources you come across. If you are new here, please read General Tutorial on Wikis or Anatomy of a Case Study for help getting started.

Notice: This page contains sources which are not attributed to any text. The unattributed sources follow the initial description. Please assist by visiting each source, reviewing the content, and placing that reference next to any text it can be used to support. Feel free to add any information that you come across which isn't present already. Sources which don't contain any relevant information can be removed. Broken links can be replaced with versions from the Internet Archive. See General Tutorial on Wikis, Anatomy of a Case Study, and/or Citing Your Sources Guide for additional information. Thanks for your help!

MetaMask Logo/Homepage

Reddit user anonymizeme used MyEtherWallet to set up their wallet, storing the seed phrase at the time on the Evernote cloud storage service. The seed phrase was then imported to MetaMask and wallets were generated on BNB (Binance Smart Chain) and FTM (Fantom) using the same private key.

After breaching the Evernote account, most likely through finding the username and password in a previously breached database, the hacker was able to obtain the seed phrase, derive the BNB and FTM wallets, and retrieve those funds.

The total tokens taken were 235.91 BNB, 1 Wrapped Ethereum, 1,853.73 Fantom, 110,455.80 KnightSwap Token, 3,336.39 Knight LP, and 17,372.10 Undead Finance Tokens. The total value is $196,649.10 when using 0.1062 for Undead Finance, no value for the Knight LP, and closing market values of December 14th, 2021 for all other tokens.

Fortunately for anonymizeme, the hacker was incredible careless and brought the funds to a wallet with a KYC/account link to Binance, Houbi, and OpenSea. They don't appear to have taken any effort to obscure the funds.

As such, when the Reddit community became aware and started investigating, the thief got incredibly scared and return some BNB. Over 236 BNB was returned to the original wallet, worth $120650.30 using the closing market price on December 14th, 2021. The remaining loss to anonymizeme is $75998.85.

This is a global/international case not involving a specific country.[1][2][3][4][5][6][7][8][9][10][11][12]

About anonymizeme

"Mac." "I stupidly did not" "have [my MetaMask] linked to a ledger."

About MetaMask

MetaMask is a "crypto wallet & gateway to blockchain apps. Start exploring blockchain applications in seconds. Trusted by over 21 million users worldwide." "Available as a browser extension and as a mobile app, MetaMask equips you with a key vault, secure login, token wallet, and token exchange—everything you need to manage your digital assets."

The Reality

Blockchain transactions are irreversible.

What Happened

"My wallet has been hacked- it's adding up to about a $175k loss (not including appreciation later)... trying to figure out how they got access, but is there anyway to track this person down?"

Key Event Timeline - MetaMask Wallet Funds Taken anonymizeme
Date Event Description
December 14th, 2021 3:52:44 AM MST Main Event Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.

Technical Details

Blockchain Transactions/Wallets:

BNB: [13][14][15][16][17][18][19][20][21][22][23][24][25][26][27][28][29][30]

Fantom: [31][32][33][34][35][36][37][38]

Other: [39]


[40][41]


"If they got your 12 word seed phrase or the private keys, those unlock all the other compatible chains. I'm not sure how it works on MEW, but I assume it's similar to MetaMask."

"So, I connected MEW to MetaMask. I thought that was Ethereum network only. From there, I opened up other networks - BNB, AVAX, etc, and thought that was different than the original MEW."

"From evernote they got seed From seed they got both pvt key and public key They check etherscan/bscscan etc for assets related to public key. Since they have pvt key they can drain them all!"


"Hardware wallet won't save you if you keep your seeds in Evernote and if understood correctly that's how OP's funds were stolen." "It wouldn’t have helped in this case because OP got hacked because he was storing his private keys in Evernote which had 3 security breaches in the past 2 years. A hardware wallet is useless if you’re just going to throw your private keys on the cloud anyway."

Total Amount Lost

"My wallet has been hacked- it's adding up to about a $175k loss (not including appreciation later)... trying to figure out how they got access, but is there anyway to track this person down?"

The total amount lost has been estimated at $197,000 USD.

Immediate Reactions

"I cried in the middle of Starbucks, called myself a million names, then realized I had to keep it moving. I'm trying to recover the funds..."


"I'm not sure - I got an email saying an Android logged into my Evernote. I immediately started moving stuff but didn't realize MEW was connected to BNB. I now have 2FA on Evernote too - didn't realize that was an option." "I checked the IP and it looked like a spoofed one."


"They got access to my Evernote which had MyEtherWallet details on it. I caught it and immediately transferred all my ETH funds, but they somehow got to BNB which isn't even supported on MyEtherWallet."


"Well, I didn't realize it and didn't think MEW connected to BNB. I caught it and moved my ETH stuff immediately. But yes - highly stupid me."


"From what I've seen in other comments, OP had 175k worth of crypto stored in a Metamask wallet, where the seed phrase was stored online via Evernote. Probably had their Evernote credentials leaked in one of the various data leaks, an attacker gained access to their Evernote account and hence their Metamask seed phrase, and then gained access to their crypto."


"[I] was thinking it was a malicious smart contract. That's even worse...175k pasted on Evernote...ffs might as well put there their bank details and pin."

"[I]f the contract created is malicious, it's written to drain funds when you sign it from your hardware wallet then you're screwed. So you need to always be certain what transaction you are signing is in fact what you want and coming from a legit (non phished) website."


"Thanks for the empathy. I know I was stupid. I was staking and didn't think I could do it with a BNB wallet. Lesson sadly learned."


Ultimate Outcome

"Your money is still on scammers wallet. Keep track of their transactions. If they try to move them to a CEX, you can get it back. If someone has the time to go through this wallet's old tx, there may be a lead somewhere."

"Hey I did some digging for you[. He's] KYC on binance. From the ad[d]ress you gave us, [h]e [t]ransfer[red] out the stolen funds to [a] secondary wallet. [T]he second wallet got funded for 0.1 bnb 67 days ago. And the last wallet was funded via [B]inance hot wallet 4 times in the last 77 days."

"Make sure to contact [B]inance[. P]rovide them with this information and when he tries to cash out via [B]inance they will freeze hes assets until you make a claim with the authorities, hope you all the best."


"I beli[e]ve I found the Third wallet from the hacker also KYC with [B]inance and tied to the other 2 wallets on multiple oc[c]asions and multiple timeframes (means wasnt just a poor guy who got hacked and drained)."

There's a "transfer from [the] third wallet to [the] second wallet (second wallet is KYC wallet that funded the wallet that holds the stolen funds)." "This basicly proves that the hacker owns the 3 wallets because he[']s just sending multiple transactions over the 3 wallets on different time dates, 2 wallets are KYC (binance can check if its the same person)."

"This basicly proves that the hacker owns the 3 wallets because he[']s just sending multiple transactions over the 3 wallets on different time dates, 2 wallets are KYC (binance can check if its the same person)."

"[O]n BSC you can see other chains with same wallet ad[d]ress. [O]ne transaction 60 days ago, of HT which is Huobi token, which if [I] read correctly you need to KYC in order to deposit. [M]aybe try to contact Huobi[. T]hey could find the user that withdrew to their ad[d]ress."

"[I]t seems they [also] interacted with [an] OpenSea account, so it's possible they will try to. You could contact OpenSea and notify them to blacklist the adress as well, since they could try laundering the money through NFTs."

"I don't know if he saw this post and got spooked, or WHAT happened, but he returned back 236 BNB today!"

"He hasn't returned my FTM yet, I am not sure if he sent back *ALL* of the BNB, and I am out a few thousand dollars in gas fees, plus the money I lost when accidentally sending DeRace to the wrong wallet when I was trying to move fast."

"I think I'm down maybe $50k, maybe less, need to check."

"BUT HE GAVE ME THE BULK BACK!! THANK YOU SO MUCH!!!!!!"


[12]

"Praying for you OP! You've got a hell of a community here helping you out, let's get this [scamm]er!"

[40]

"OP, if you have the funds back in your wallet you need to move them out of that compromised address right now! Create a new wallet and do that ASAP. Congrats on getting it back!!"

Total Amount Recovered

The attacker ultimately returned a portion of the stolen funds after community investigation showed they were linked to KYC accounts on multiple exchanges.

The total amount recovered has been estimated at $121,000 USD.

Ongoing Developments

TBD

Individual Prevention Policies

The primary failure was storing a seed phrase online. Additional failures were also reusing passwords across websites and storing most funds in the same active wallet.

The best practice is to keep the majority of funds offline in a newly generated wallet which has never been online. All copies of the seed phrase or private key should be stored physically offline and never backed up online. Only bring funds to an online active wallet when performing a specific transaction, and return them offline as soon as possible.

Store the majority of funds offline. By offline, it means that the private key and/or seed phrase is exclusively held by you and not connected to any networked device. Examples of offline storage include paper wallets (seed phrase or key written down and deleted from all electronic media), hardware wallets, steel wallet devices, etc...

Private keys can be obtained through seed phrases, mnemonics, private key files, mobile synchronization screens, wallet export features, wallet backups, etc... Never ever send these to anyone else who you do not intend to allow to take all of your money. Attackers will use a wide variety of tactics to convince you like pretending to be your wallet software, pretending they work for the wallet software, or asking you to screen share. Don't fall for them.

For the full list of how to protect your funds as an individual, check our Prevention Policies for Individuals guide.

Platform Prevention Policies

While in this case, a large portion of the lost funds were recoverable, a more sophisticated attacker could have better covered their tracks through privacy protocols and coins. It is therefore critical that users know how to protect themselves and prevent incidents from happening.

Never take for granted the limited knowledge of users of your service and their tendency to skip past provided information. It is recommended to design a simple tutorial and quiz for new users which explains the basics of seed phrases, strong password generation, secure two-factor authentication, common fraud schemes, how ponzi schemes work, as well as other risks which are unique to the cryptocurrency space. This tutorial and quiz should ensure their understanding and be a standard part of the sign-up or download process which is difficult or impossible to skip.

An industry insurance fund can be set up to assist victims. While the amount of relief provided is discretionary, payouts could happen much faster and more information could be gathered on the crime.

Work with other industry platforms to set up a multi-signature wallet with private keys held separately by delegate signatories from seven prominent platforms and services within the industry. Establish requirements for contributions by all platforms and services, designed to be affordable for small platforms yet large enough to cover anticipated breach events. Any breach event can be brought forth by a member platform or a petition of 100 signatures for consideration by the delegate signatories. A vote of 4 or more delegate signatures is required to release any funds, which could partially or fully restore lost funds based on their assessment.

For the full list of how to protect your funds as a financial service, check our Prevention Policies for Platforms guide.

Regulatory Prevention Policies

While in this case, a large portion of the lost funds were recoverable, a more sophisticated attacker could have better covered their tracks through privacy protocols and coins. It is therefore critical that users know how to protect themselves and prevent incidents from happening.

Create a standard tutorial and quiz for all new cryptocurrency participants, which is required to be completed once per participant. This tutorial and quiz should cover the basics of proper seed phrase protection, strong password generation, secure two-factor authentication, common fraud schemes, how to detect and guard against phishing attacks, how ponzi schemes work, as well as other risks which are unique to the cryptocurrency space.

An industry insurance fund can be set up to assist victims. While the amount of relief provided is discretionary, payouts could happen much faster and more information could be gathered on the crime.

Set up a multi-signature wallet with private keys held separately by delegate signatories from seven prominent platforms and services within the industry. Establish requirements for contributions by all platforms and services within the country, designed to be affordable for small platforms yet large enough to cover anticipated breach events. Any breach event can be brought forth by a member platform or a petition of 100 signatures for consideration by the delegate signatories. A vote of 4 or more delegate signatures is required to release any funds, which could partially or fully restore lost funds based on their assessment.

For the full list of regulatory policies that can prevent loss, check our Prevention Policies for Regulators guide.

References

  1. ↑ Got hacked for about $175k - is there any recourse? : CryptoCurrency (Jul 3, 2022)
  2. ↑ anonymizeme comments on Got hacked for about $175k - is there any recourse? (Aug 25, 2022)
  3. ↑ https://coinmarketcap.com/currencies/bnb/historical-data/ (Feb 15, 2022)
  4. ↑ https://coinmarketcap.com/currencies/fantom/historical-data/ (Aug 25, 2022)
  5. ↑ https://coinmarketcap.com/currencies/knightswap/historical-data/ (Aug 25, 2022)
  6. ↑ https://coinmarketcap.com/currencies/undead-finance/historical-data/ (Aug 25, 2022)
  7. ↑ https://coinmarketcap.com/currencies/ethereum/historical-data/ (Dec 21, 2021)
  8. ↑ https://metamask.io/ (Mar 6, 2022)
  9. ↑ Got hacked for about $175k - is there any recourse? : CryptoCurrency (Aug 26, 2022)
  10. ↑ Reddit - Dive into anything (Jul 19, 2023)
  11. ↑ Reddit - Dive into anything (Jul 19, 2023)
  12. ↑ 12.0 12.1 Bam607 - "Praying for you OP! You've got a hell of a community here helping you out, let's get this [scamm]er!" - Reddit (Jul 19, 2023)
  13. ↑ https://bscscan.com/address/0xd7c83309c6025ecdd974fc824117ea0688baf037 (Aug 24, 2022)
  14. ↑ https://bscscan.com/tx/0x278dde93845696d3d2b2d2ac602b16bcc688f651ad7859ae8b79991064cf5655 (Aug 25, 2022)
  15. ↑ https://bscscan.com/address/0x46f321cd443c781e7283aa843bad7c67f98e72a2 (Aug 25, 2022)
  16. ↑ https://bscscan.com/tx/0xf96f8121c0acdde89d1e460a21d871d74ae38270db96727d1bcd31c75c2f06ec (Aug 25, 2022)
  17. ↑ https://bscscan.com/address/0x68f97404eaabb8e401b2d87f6a44e106da5b0356 (Aug 25, 2022)
  18. ↑ https://bscscan.com/tx/0x7464ebc70413b320aa140600c5d722b77f992db63bb6caf50e8b7434adbd486e (Aug 25, 2022)
  19. ↑ https://bscscan.com/tx/0x75a0a99e5e5b2ae6d0623844ec4f3af5dc82a2a7892a1a1675efd1ec3b4f2440 (Aug 25, 2022)
  20. ↑ https://bscscan.com/tx/0x6e9a8d4b9e6a6b31277cabae816b213d0f614a7c5f302f8446ba86ef0c1ecc38 (Aug 25, 2022)
  21. ↑ https://bscscan.com/tx/0x9a9dcc9a791c0ebbe81f5c20ffd850268a36e06ccf66461bdccdd0681fb690e1 (Aug 25, 2022)
  22. ↑ https://bscscan.com/address/0x8f15e039fe4d9721cd843a5f101c16012dff3db9 (Aug 25, 2022)
  23. ↑ https://bscscan.com/tx/0x37df4e22c40d47d3063e949bd51b15ce8ecbd9211eadedb340771d444356d62c (Aug 25, 2022)
  24. ↑ https://bscscan.com/tx/0x5e198098fa50f8761ffb57a8f831b8e8665c29542f82422a744155db4ee3e259 (Aug 25, 2022)
  25. ↑ https://bscscan.com/tx/0x56f9029913631870e107a3603980b1cd73b6d90a8d2d433ac385d7f6dc95166e (Aug 25, 2022)
  26. ↑ https://bscscan.com/tx/0x6b399b3b566018262b367e8477fb2223be6f5cb4ede6ea74d9f7efcb80a9539a (Aug 25, 2022)
  27. ↑ https://bscscan.com/tx/0x1681d4df9115db05d81ed0047e59e752126627ccd385cec0553d14479cfe8883 (Aug 25, 2022)
  28. ↑ https://bscscan.com/tx/0x981aef4570423c8dc86dd60b3761d9f969c5da1f46d475602efee1b7dffe2541 (Aug 25, 2022)
  29. ↑ https://bscscan.com/tx/0x47142ed2e09f38f6d33c8454d3f9605618d8261236f54d1c84d13452504eb10d (Aug 25, 2022)
  30. ↑ https://bscscan.com/txs?a=0x68f97404eaabb8e401b2d87f6a44e106da5b0356 (Sep 6, 2023)
  31. ↑ Address 0xd7c83309c6025ecdd974fc824117ea0688baf037 | FtmScan (Aug 24, 2022)
  32. ↑ Fantom Transaction Hash (Txhash) Details | FtmScan (Aug 25, 2022)
  33. ↑ Fantom Transaction Hash (Txhash) Details | FtmScan (Aug 25, 2022)
  34. ↑ Fantom Transaction Hash (Txhash) Details | FtmScan (Aug 25, 2022)
  35. ↑ Fantom Transaction Hash (Txhash) Details | FtmScan (Aug 25, 2022)
  36. ↑ Fantom Transaction Hash (Txhash) Details | FtmScan (Aug 25, 2022)
  37. ↑ Fantom Transaction Hash (Txhash) Details | FtmScan (Aug 25, 2022)
  38. ↑ Fantom Transaction Hash (Txhash) Details | FtmScan (Aug 25, 2022)
  39. ↑ https://hecoinfo.com/address/0x46f321cd443c781e7283aa843bad7c67f98e72a2 (Aug 25, 2022)
  40. ↑ 40.0 40.1 20pastfour - "one of the adresses he uses, he used binance to fund it, you may want to contact them for help. This hacker is not very smart lmao" - Reddit (Jul 19, 2023)
  41. ↑ https://uploads.disquscdn.com/images/519b783f2d654d64fe0de73c30444dcbe2cf972a1c2bbe3e7585b324b04a5606.png (Oct 8, 2022)
Retrieved from "https://quadrigainitiative.com/cryptocurrencyhackscamfraudwiki/index.php?title=MetaMask_Wallet_Funds_Taken_anonymizeme&oldid=4995"