Opti
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Post by Opti on Mar 23, 2022 7:42:10 GMT -5
Another hazard of crypto. www.msn.com/en-us/money/other/the-founder-of-a-defi-venture-capital-fund-just-had-1-7-million-worth-of-nfts-stolen-from-his-personal-wallet/ar-AAVnqjT?ocid=msedgntpEven those well-versed and experienced in the crypto space aren’t safe from scams and hacks.
Arthur Cheong, founder of DeFiance Capital, a venture capital fund focused on the decentralized finance (DeFi) space, just had over $1.7 million worth of nonfungible tokens (NFTs) stolen from his crypto wallet on Tuesday.
"Well, this hit me hard but if I got exploited as a fairly sophisticated 5 years crypto user (DeFi user, password manager, mostly hardware wallet), I'm not sure how I can persuade most normal people to put a substantial part of their net worth on chain anymore," Cheong wrote in a tweet that has since been deleted.
Cheong’s crypto wallet that was targeted was a “hot” wallet, or one connected to the internet, rather than a “cold” or hardware wallet. “Cold” wallets are deemed to be a safer option, as they can be stored offline. While no option is completely safe, for this reason hardware wallets are recommended as a better bet for holding crypto assets.
Cheong said on Twitter the “likely root cause” for the exploit is a “spear-phishing email” he received recently. The email appeared to be from one of DeFiance Capital’s portfolio companies, which is why Cheong clicked. But, upon opening the file shared in the email, the hacker was able to get his seed phrase, or password, and obtain access to his crypto wallet.
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Artemis Windsong
Senior Associate
The love in me salutes the love in you. M. Williamson
Joined: Dec 18, 2010 19:32:12 GMT -5
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Post by Artemis Windsong on Mar 23, 2022 17:29:19 GMT -5
A sophisticated investor scammed.
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Opti
Community Leader
Joined: Dec 18, 2010 10:45:38 GMT -5
Posts: 39,592
Location: New Jersey
Mini-Profile Name Color: c28523
Mini-Profile Text Color: 990033
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Post by Opti on Mar 23, 2022 17:33:20 GMT -5
Sounds like a cautionary tale and a reason to use a "cold" wallet.
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