Crypto Industry Haunted By Scam Threat, Hundreds Of NFTs Stolen In ‘Sleepdrop’ Fraud Scheme

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Crypto Industry Haunted By Scam Threat, Hundreds Of NFTs Stolen In 'Sleepdrop' Fraud Scheme
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DIKSIA.COM - NEW YORK, The cryptocurrency industry is once again plagued by the threat of scams as the Forta network recently posted a tweet warning about the Sleepdrop scheme.

“We have discovered a new called Sleepdrop, which has been targeting users on a large scale. The scam involves the unexpected presence of tokens in users' wallets,” Forta's tweet explained.

In a statement on their Twitter account, Forta elaborated on the Sleepdrop scam, which deceives users by sending fake tokens through an airdrop.

They target tokens based on the ERC-20 standard, such as tokens from Uniswap, Chainlink, Lido, and Circle.

Interestingly, the Sleepdrop scam creates these fake tokens to appear as genuine NFTs.

After successfully deceiving their unsuspecting targets, they trick them into signing transactions through decentralized application (dApp) links sent by the Sleepdrop hackers.

Unbeknownst to the users, the Sleepdrop scam starts its operation by accessing the contract connector in the users' crypto wallets.

This fraudulent activity usually persists for a considerable period, as investors often fail to detect early signs of the Sleepdrop scam.

Initially, hackers make small transfers, but gradually they drain the NFT tokens stored in investors' crypto wallets, as reported by cryptomode.

“This new scam scheme leverages users' crypto wallet contracts and almost always ends with the depletion of native tokens,” explained Ivan Spanier, a member of the Forta Foundation who discovered the Sleepdrop scam.

To anticipate similar actions, the FBI advises banks and crypto trading platforms to enhance automatic alerts.

This measure aims to notify investors of suspicious transactions, reducing the number of crypto scam victims.

In the first quarter of 2023 alone, the total amount lost to cryptocurrency scams reached a staggering $54 million.

Among the top ten cases, Fintoch suffered a loss of $31.7 million due to smart contract exploitation.

Additionally, the Jimbo Protocol on Arbitrum experienced losses of up to $7.5 million as a result of the scam.

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