After signing several phishing signatures, the user fell victim of the scam and lost their digital assets.
A MakerDAO governance delegate lost $11 million in Aave Ethereum (aEthMK) and Pendle USDe tokens as a result of several phishing signatures.
However, in the early hours of June 23, the Scam Sniffer identified the incident.
The user fell prey to the phishing fraud after signing several phishing signatures, resulting in the loss of their digital assets.
The loss
The sender address, 0xfb94d3404c1d3d9d6f08f79e58041d5ea95accfa, transferred 3,657 aEthMK tokens to the recipient address, 0x739772254924a57428272f429bd55f30eb36bb96, and the transaction was confirmed within 11 seconds.
According to crypto reporter Colin Wu, Arkham determined that the victim in the case was a MakerDAO governance delegate.
The delegate is a critical component of the MakerDAO system, contributing to its efficient operation and decision-making procedures.
Meanwhile, delegates are accountable for voting on governance proposals, governance surveys, and executive votes, which significantly impact decisions within the Maker protocol.
Marker (MKR) holders and delegates typically vote to determine proposals, which progress from initial polls to final executive votes.
If a proposal is approved, it is incorporated into the Maker protocol after a waiting period known as the Governance Security Module (GSM), which serves as a security precaution to avoid abrupt protocol modifications.
Phishing Scams
Cointelegraph reported in December that crypto scammers were progressively employing “approval phishing” tactics to steal funds.
Approval phishing is a crypto scam in which criminals entice victims to sign transactions that grant them access to their wallets, thereby enabling them to withdraw funds.
While the tactic is not new, Chainalysis reports that pig-butchering scammers are using it more frequently.
Phishing scams are a common form of cybercrime in which perpetrators deceive individuals into providing sensitive data by posing as reputable entities.
The user was duped into signing numerous fraudulent signatures for the Permit network in this instance, resulting in the loss of their tokens.
Phishing scams sucked $300 million from 320,000 users in 2023, according to a Scam Sniffer report that was published earlier in the year.
Among the most severe cases in the Scam Sniffer study, a single victim lost $24.05 million as a result of phishing signatures like Permit, Permit 2, Approve, and Increase Allowance.