Hacked! Hundreds of EVM Wallets Drained of Small Amounts — Insights from ZachXBT

Widespread EVM Wallet Drain Linked to Phishing Scheme and Trust Wallet Incident

Recent developments in the crypto space reveal a significant security breach affecting multiple Ethereum Virtual Machine (EVM) compatible networks. An unidentified attacker has drained hundreds of wallets, exploiting a likely phishing campaign to siphon small amounts of funds from each victim. While individual losses are generally below $2,000, the scale of the attack underscores persistent vulnerabilities within the decentralized ecosystem.

Key Takeaways

• An attacker has drained wallets across various EVM-compatible networks, suggesting a broad, orchestrated campaign.
• The exploited method likely involved a spoofed email impersonating MetaMask, facilitating fraudulent access.
• The incident may be connected to the recent Trust Wallet breach, indicating a potential link between the two exploits.
• Crypto users are urged to revoke smart contract approvals and maintain vigilant security practices to mitigate risks.

Tickers mentioned: none specific

Sentiment: Neutral

Price impact: Neutral. The incident highlights ongoing security challenges rather than immediate market shifts.

Market context: The event reflects increasing cyber threats within the DeFi landscape, emphasizing the need for enhanced security protocols.

The recent crypto incident has spotlighted a broad wallet drain affecting several EVM-based networks. This assault, characterized by onchain investigator ZachXBT as a widespread but low-value exploit, has compromised hundreds of wallets with losses generally less than $2,000 each. The activities appear linked to phishing tactics, with a probable method involving a fraudulent email masquerading as communication from MetaMask, a popular Web3 wallet. Cybersecurity researcher Vladimir S. pointed to clues suggesting automated, wide-net exploitation, advising users to revoke smart contract approvals and closely monitor wallet activity.

Further investigation hints at a connection between this incident and the Trust Wallet hack that resulted in approximately $7 million in losses on Christmas. The Trust Wallet breach was attributed to a supply chain attack involving the compromise of npm packages used in wallet development. Malicious code was uploaded via a compromised extension on the Chrome Web Store, which was then downloaded by unsuspecting users. Trust Wallet’s team confirmed that the mobile app remained unaffected, and Binance, which owns Trust Wallet, committed to reimbursing impacted users.

Industry experts, including Binance co-founder Changpeng Zhao, suspect insider involvement in the Trust Wallet hack, citing the sophistication of the attack and access to source code. The incident underscores the importance of rigorous security measures for crypto projects and users alike. It also emphasizes the continuing evolution of cyber threats targeting digital assets, prompting the community to act more diligently as threats persist across various platforms and networks.