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- 1 Shell Protocol’s account was promoting fake airdrops and seemed to be controlled by bad actors.
- 2 The hack of Shell Protocol was confirmed once hackers started posting tweets of airdrops which appeared to be a scam.
Crypto hacks are becoming quite common nowadays, and from the point of view of bad actors, it is one of the most popular ways to become richer in a short duration.
According to the Twitter post of Alex Svanevik, the Chief Executive Officer of Nansen, bad actors breached the PleasrDAO account and took control of it on July 19, 2023.
As per other market and on-chain watchers, the bad actors have also hacked the account of Shell Protocol. However, the PleasrDAO account has not been creating posts very often,due to which there is limited information available on how hackers are using its account to perpetrate attacks.
The hack of Shell Protocol was confirmed once hackers started posting tweets of airdrops, which appeared to be a scam. Moreover, the community is trying to trace the bug which provided a path for hackers to hack its account.
Source: Screenshot of Shell Protocol Twitter account promoting fake airdrops.
A Twitter user also claimed that hackers had successfully cloned the website of Shell and had attached the link in the tweet promoting airdrops. Clicking on the malicious link could result in massive theft.
Crypto Hacks in 2023
Dozens of blockchain analysis firms claim that 2022 was one of the worst years regarding crypto hacks and scams. Fortunately, the percentage of crypto hacks has slipped since the beginning of 2023.
In 2022, crypto-hack masterminds wiped out $3.8 billion from the industry. In the first quarter of 2023, hackers managed to steal over $320 million from the crypto industry, according to blockchain security firm CertiK. Although these losses were lower compared to 2022’s first and fourth quarters, they were still significant.
One of the reasons assumed for the fall in hacks is the sanction of the cryptocurrency miner Tornado Cash by the U.S. Treasury. Additionally, the arrest of P.F. and charges against Mango Market’s exploiter Avraham Eisenberg have discouraged hackers.
On March 9, 2023, DefiLlama revealed that Platypus Finance was attacked by flash loans resulting in a $8.5 million loss. The report highlighted six more hacks that affected the firm in the previous month.
According to U.S. Blockchain analysts, scammers wiped around $1.3 billion from cryptocurrencies, and 97% was from DeFi platforms in the previous year.
On February 2, Orion Protocol suffered a $3 million loss due to a reentrancy issue on its core contract. According to the tweet, attackers used malicious smart contracts to drain targeted users’ funds through repeated withdrawal orders.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
