Deri Protocol (DERI) founder 0xAlpha announced on Twitter that the protocol lost a significant amount of DERI tokens due to his own fault.
0xAlpha, the founder of Deri Protocol, shared the details of the incident on Twitter and admitted that it was his fault that led to the theft.
10 Million Tokens Stolen after DERI Altcoin Founder Clicked Wrong Link
According to 0xAlpha, it was trying to bridge some USDC from Binance Smart Chain (BSC) to zkSync within the treasury address, but fell victim to a phishing website that appears to be Stargate, a cross-chain bridge service.
He said that ignoring the warning of the crypto wallet MetaMask, the attacker signed a message that allowed him to transfer DERI from the treasure address.
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The Deri Treasury experienced a phishing attack on one of its wallet addresses on March 29th and today, resulting in the theft of about 10 million DERI tokens. Here's the frustrating, facepalm-worthy story of what happened:— 0xAlpha (@0x_Alpha) March 31, 2023
The attacker then transferred all the DERI tokens held by the wallet in BSC and dumped them through various exchanges. The same thing was repeated today when the attacker took all the DERI tokens held by the wallet on Ethereum and dumped them as well. 0xAlpha said he realized too late that something was wrong and by then all DERI tokens were gone.
The founder apologized to the Deri Protocol community and said he learned a great lesson from this experience. He also clarified that the fake address is only for keeping DERI tokens in the treasury and has nothing to do with the Deri Protocol itself and is still functioning normally.
According to CoinMarketCap data, the total market cap of the DERI token is around $5 million. However, DERI tokens are trading at 99.33% lower than the all-time high recorded on February 12, 2021.
*Not investment advice.
