Crypto scams are continuing in 2024. Recently, the founder of a crypto wallet fell victim to a phishing attack in which he lost $125,000 in a Fake LFG Token Attack. Many people have fallen victim to the fake LFG token airdrop.
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Crypto Wallet Founder Loses $125,000 in Fake LFG token attack
The co-founder and CEO of Nest, a crypto wallet app focused on security, became a victim of a phishing attack while attempting to claim what he believed was a legitimate airdrop. This resulted in the loss of 52 stETH tokens valued at $125,000.
The LFG token airdrop, which stands for “less fees and gas,” was recently unveiled to reward Ethereum users who have spent over $4,269 on transaction fees since 2016, to bring them onto the Solana blockchain.
A fraudulent website, imitating the official LFG token platform, surfaced to deceive users and siphon funds, with Nest Wallet co-founder Bill Lou among the high-profile victims.
Expressing his ordeal, Lou shared, “I just got scammed out of $125k of stEth while trying to claim the LFG airdrop.” Lou fell prey to the scam after clicking on a link from a top Google search result that led to the fake website.
He acknowledged that using Nest instead of MetaMask for claiming the airdrop would have prevented the incident, as Nest Wallet has a built-in transaction simulation feature that MetaMask lacks.
Lou emphasized the importance of transaction simulation and advised users to verify links through official channels and consider using multisig wallets for added security.
Victims of the attack
It appears that Lou is not the sole victim of such attacks, as others reported having their wallets drained after clicking on similar fake links via counterfeit X accounts.
Addressing the situation, the LFG project posted a message stating, “We are aware of several scam accounts impersonating us and are reporting them. Please do the same and help protect your fellow users,” while providing details of their official X account and website.
LFG Project Airdrop
The LFG project plans to airdrop a total of 400 billion LFG tokens to 387,000 qualifying wallets, with unclaimed tokens set to be burned after one month. The current value of the token is $0.000069, according to CoinGecko data.
Approximately 25,000 users have claimed LFG tokens on Solana so far. Out of the total token supply of 1 trillion LFG tokens, 60% is allocated for airdrops, 10% for early contributors, 6% for liquidity provision, and 24% for the project’s treasury, according to another statement from X.
Conclusion
To conclude, the crypto wallet founder fell victim to a scam losing $125,000 in a fake LFG token scam. Airdrop scams are becoming common affecting many people. Be vigilant and careful while claiming these airdrops.
Note: It’s a research based article not a financial advice.
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