How Web3 Fraudsters Manipulate Decentralized Finance to Steal Millions
Web3 is an excellent and rapidly evolving industry, resembling a mighty financial river. It cannot be stopped; the only option is to adapt to new realities. However, like any river, Web3 hides many hidden dangers. In today's article, the Coinmooner team wants to focus on one of the most significant risks in this space — fraud — and share a story that recently happened. CoinMooner emphasizes the importance of staying vigilant and cautious to protect yourself in decentralized finance.
According to court records, a criminal managed to access the email correspondence of a married couple buying a new home and negotiating with a law firm. Neither side of the conversation had any idea that the perpetrator had intercepted and carefully studied their messages. Investigators revealed that the fraudster used this access to plan and execute a scheme that led to significant financial losses.
At the final stage of the transaction, the criminal sent the couple a fake email that looked like an official message from the law firm. The email contained payment details and instructions for transferring the funds. Without realizing the deception, the family transferred a significant amount — approximately $960,000 — to the specified account. The money was immediately converted into Bitcoin, with 1.5 BTC sent to an external cryptocurrency wallet.
The investigation uncovered that these 1.5 BTC were linked to a crypto address on the Binance exchange. KYC verification (identity confirmation process) showed that the account was registered to a Nigerian citizen residing in Turkey. Detectives discovered that after receiving the transfer, about $89,999.97 was withdrawn in fiat currency. Thanks to the coordinated efforts of investigators, the U.S. Secret Service was able to freeze the criminal's bank and cryptocurrency accounts and file a court motion to seize their assets.
This incident comes amid efforts by U.S. lawmakers to strengthen regulation in the crypto industry. In early August, a group of senators introduced a new bill to Congress called the "Combating Money Laundering, Terrorist Financing, and Counterfeiting Act." If passed, the U.S. Secret Service will gain additional powers to investigate crimes involving cryptocurrency.
Coinmooner has repeatedly raised the security issue in Web3 and strongly urges everyone to be extremely careful. It’s essential to remember that only you can protect yourself from fraudulent schemes. Use the most up-to-date security measures — this will help you safeguard your finances and your data from leaks. Attention to detail and a conscious approach are the keys to staying safe in decentralized technologies.
