The Curious Case Of The $4M Webaverse Hack

Share This Post

Raising capital in the crypto environment can bring a unique and unparalleled set of challenges. Look no further than the ever-curious case of Webaverse, a firm building a game engine and MMO (massive multiplayer online game) inspired by metaverse characteristics.

The Webaverse team took a brutal hit recently after suffering a ~$4M social engineering exploit. However, this wasn’t your ‘run of the mill’ hack – or at least, it hasn’t been presented as such. While the executional details of the hack are still very much in question, one thing is for sure: this was the result of a sophisticated ‘long game’ of social engineering backed by fake KYC info, fraudulent websites, and topped off with an in-person meeting.

Exploits Reach New Levels 

These days, curious minds can’t be inquisitive enough – and due diligence just can’t be diligent enough. We covered an exploit that resulted in the theft of over a dozen Bored Ape Yacht Club NFTs just two months ago, and another recent story with similar strokes tell us that one thing is for sure: with the dollar amounts in today’s crypto landscape, hackers and exploiters are willing to go to unbelievably great lengths to scam digital assets.

December’s NFT heist featured an elaborate fake casting director who utilized a fake website, fake email domains, fake pitch decks, and more – all to build a façade of trust, and combat efforts of due diligence. The result was over $1M in immediate losses for the owner.

This ‘similar but different’ story came to light this week, first amplified by well-respected DefiLlama coder 0xngmi.

A Curious Case Of Crazy Circumstances

Linked in 0xngmi’s tweet is the official statement from the Webaverse team, a 4-page Google Doc that was drafted by the firm’s co-founder and CEO Ahad Shams. Shams detailed that in November of 2022, after weeks of dialogue with a sophisticated crew of scammers that posed as potential investors, a meeting was arranged between them in Rome.

The scammers requested ‘proof of funds,’ and Shams sought to protect himself by only exposing a screenshot of a self-custodied and independent Trust Wallet with the funds, claiming that no keys or vital account details were exposed and that the wallet was a self-created, self-controlled and self-custodied one utilized for solely this occassion.

Other incident-preventing efforts were put in to place from Shams around this interaction, but in this case, the steps Shams took to protect his organization’s funds were seemingly not enough.

In all, as Shams notes, this is not a situation of a DAO or other pool of public funds rugging a user. It’s merely a company owned feeding curious crypto minds information about an unfortunate circumstance that was no result of a lack of due diligence or care. That doesn’t mean, however, that Shams didn’t make a mistake along the way.

In fact, today’s common logic would imply that we’re missing a vital piece of the puzzle here.

Trust Wallet CEO Eowyn Chen released a tweet in response on Monday. Don’t be surprised if market sleuths uncover more with due time.

Read Entire Article
spot_img

Related Posts

Bitcoin Rebounds After Nearing Cost Basis Of Short-Term Whales

Bitcoin has found a rebound back above the $66,000 mark following a drop towards the on-chain cost basis of the short-term holder whales Bitcoin Drawdown Had Nearly Put Short-Term Whales Under

Bitcoin Open Interest Has Cooled Off, Good Sign For Bulls?

Data shows the Bitcoin Open Interest has observed a notable cool off recently, something that could be positive for the rally’s hopes Bitcoin Open Interest Has Cooled Down From Recent

Bitcoin sees record fees in 2024 as halving approaches

Quick Take As the Bitcoin halving draws near, Bitcoin activity is witnessing a significant uptick in fees and hash rate Fees On April 12, Bitcoin recorded its highest one-day fees in 2024, reaching

Short Sellers Target Bitcoin Miners as Reward Halving Nears, $2 Billion at Stake

A recent report highlights that the collective short interest in stocks from 15 bitcoin mining companies has approached the $2 billion mark The performance of these mining stocks has declined

Bitcoin Goes Pro: UFC Winner Wants $300,000 Bonus Paid In BTC

Bitcoin adoption is soaring across sectors, emerging as a standard in the sports industry Demonstrating this trend, a UFC winner has requested his bonus to be paid in Bitcoin, underscoring the

Hong Kong’s Approval Of Spot Bitcoin And Ethereum ETFs Triggers Crypto Market Recovery

On Monday, the Hong Kong Securities and Futures Commission (SFC) announced that it had approved a number of Spot Bitcoin and Ethereum ETFs for trading This decision has been a long time in the making
- Advertisement -spot_img