Copying the name of Yearn Finance’s new DeFi project, the scammers stole $ 50,000 ETH in half an hour.
Unfortunately, the money lost to fraudsters in the DeFi industry does not come to an end. Finally, the fraudsters who copied the name of Yearn.Finance founder Andre Cronje’s new product did not miss the opportunity.
Opportunists took immediate action after Yearn Finance creator Andre Cronje introduced Deriswap, its new lending and borrowing product. A fraudster managed to put 53 thousand dollars in his pocket in a short time like half an hour.
A tweet on the subject summed up the situation clearly:
“Andre made an update on Deriswap half an hour ago. Later, someone produced a fake token called DWAP. More than 150 ETH from 60 addresses were sent in 15 minutes. Veeee all gone. Check in Etherscan for a few minutes before jumping into a project. This is not that hard ”
Cronje is likened to the Phrygian king Midas, who turns what he touches into gold, and his projects attract great attention. With limited supply, YFI rose to $ 42,000 in the DeFi trend in the summer, and then reached the bottom with $ 7,000 in October and November. However, YFI, which has managed to recover again, is currently trading around $ 24,000.
Cronje’s successful projects do not go unnoticed by investors. Finally, serious investments were made in Keep3r Network and Eminence. In fact, the investments that came after the announcement made before the controls were completed in Eminence did not go unnoticed by hackers and a large amount of funds were stolen.
However, Cronje must have learned from this situation that he did not come up with a token when promoting his new project. This was probably to prevent investors from investing right away and a possible loss. But the opportunists were not idle either! Hearing about the new project, the scammers instantly created fake projects and created DWAP tokens on the decentralized exchange Uniswap. As it is known, it is very easy to create tokens in Uniswap and everyone can open transaction pairs for the token they have created, and provide liquidity to both parties to start a pool. With this new style of market, investors are free to participate in transactions.
Drained the pool with 162 ETH in 20 minutes
After the announcement of Deriswap, a scammer produced fake DWAP tokens and provided 72.4 ETH to the Uniswap pool, where it managed to attract pure traders by doing a few transactions. After 20 minutes he emptied the entire pool with 162.3 ETH. During this time, the fraudster managed to put 90 ETH, or approximately 53 thousand dollars, into his pocket.
After this fraud occurred, another 30 DWAP pool was created in Uniswap. Scammers managed to earn a few ETH here as well.
The reason for the constant fraud incidents in the DeFi sector is of course that it is easy to generate tokens and that these coins can be listed on the decentralized exchange when desired… As it is known, listing tokens on central exchanges is generally very expensive and requires serious control and supervision. However, there is no audit and control process in the decentralized exchange. This causes scammers to easily prey on users who want to make money in a short time.