Reports said that a sophisticated phishing campaign targeting liquidity providers (LPs) of the Uniswap v3 protocol has seen attackers make off with at least $4.7 million worth of Ether (ETH).
It has been reported that the community is reporting the losses could be even greater. MetaMask security researcher Harry Denley was one of the first to raise the alarm bells of the attack, telling his 13,000 Twitter followers on Monday that 73,399 addresses had been sent malicious ERC-20 tokens to steal their assets.
However, at least $4.7 million in ETH has been lost in the attack, according to a Twitter post from Binance CEO Changpeng Zhao (CZ). There are also reports among the crypto community that there may be more significant losses from the incursion.
The report said that prominent Crypto Twitter user 0xSisyphus noted on Monday that a “large LP” with around 16,140 ETH, worth $17.5 million, may have also been phished.
Likewise, according to Denley, the phishing attack works by sending unsuspecting users a “malicious token” called “UniswapLP” — made to appear as coming from the legitimate “Uniswap V3: Positions NFT” contract by manipulating the “From” field in the blockchain transaction explorer.
Users curious about their new tokens would be directed to a website purporting to allow them to swap their new tokens for Uniswap (UNI), worth $5.34 each, as of July 12. The website would instead send the users’ address and browser client info to the attackers’ command center, which would also attempt to drain cryptocurrency from their wallets.
A Reddit post also explaining the attack noted that the attackers had stolen native tokens such as Ether, ERC-20 tokens, and nonfungible tokens (NFTs) (namely Uniswap LP positions) from victims. On Wednesday, Uniswap Labs added its own detailed explanation on Twitter about how the scam worked, emphasizing that the incident was part of a phishing scam, not an exploit.
Moreover, Binance’s CEO Zhao created some waves in the crypto markets when he first sounded alarms about the attack, calling it a “potential exploit” of the Uniswap protocol on the Ethereum blockchain.
CZ clarified soon after the post with another update, sharing a conversation with the Uniswap team, who noted the attack was part of a phishing attack rather than any issue with the protocol.
Thus, CZ’s initial alarming comments coincided with a sharp drop in the Uniswap price, which fell to a 24-hour low of $5.34. The price of UNI has since recovered after the clarification to $5.48, as of July 11, but is still down 11% in a few hours and is 87.8% down from its all-time-high.