Crypto Scam: EIGEN Token Holder Loses $155K After Signing Malicious Allowance Transaction

A significant cryptocurrency theft has been reported by Scam Sniffer, involving the loss of $155,256 worth of EIGEN tokens. 

The incident occurred when a user fell victim to a sophisticated phishing attack by signing a malicious “increase Allowance” transaction. 

The type of attack specifically targets the token approval mechanism in cryptocurrency transactions, allowing attackers to gain control over the victim’s assets. 

The incident was detected and reported approximately eight hours after the transaction was executed, highlighting the immediate and irreversible nature of cryptocurrency scams.

Broader Context of Cryptocurrency Scams

This incident occurs within a broader context of increasing cryptocurrency-related fraud, as highlighted by recent Scam Sniffer reports. 

The organization has uncovered alarming statistics, revealing $127 million in cryptocurrency phishing losses during Q3 2024, with DeFi platforms being particularly vulnerable to attacks. 

Additionally, Scam Sniffer has recently issued warnings about a new wave of sophisticated scams involving fraudsters impersonating popular crypto influencers on social media platforms like X, demonstrating the evolving nature of cryptocurrency-related fraud.

Implications and Security Concerns

The incident underscores the critical importance of security awareness in cryptocurrency transactions, particularly regarding token approvals and allowances. 

The substantial loss suffered by the EIGEN token holder serves as a stark reminder of the risks associated with cryptocurrency investments and the sophisticated nature of modern phishing attacks. 

The case in question, combined with Scam Sniffer’s broader findings about Q3 2024 losses, highlights the urgent need for enhanced security measures and user education in the cryptocurrency space. 

The incident particularly emphasizes the importance of carefully reviewing all transaction approvals and being vigilant about potential phishing attempts, especially those involving token allowances and permissions.

Current EIGEN Market Status

Despite the security incident, Eigenlayer (EIGEN) has shown remarkable resilience in the market. The token is currently trading at $4.04, demonstrating positive momentum with a 2.20% increase in value over the last 24 hours. 

More impressively, EIGEN has recorded a substantial 13.37% price increase over the past week. 

The token maintains a healthy trading volume of $92,625,939 within the last 24 hours, and with a circulating supply of 210 Million EIGEN, the project currently holds a market capitalization of $852,043,079, indicating strong market presence despite the security concerns.

Also Read: Telegram Influencer Scam Alert: ScamSniffer Warns Of New Malware Scam Targeting Crypto Users