Scammers Use Multichain Hack to Conduct Phishing Scheme

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  • Scammers are riding on Multichain’s misfortunes to run a phishing scheme on Twitter
  • The malicious actors are targeting FTM holders since the Fantom bridge is the most affected by the hack
  • The scheme involves promises of receiving “emergency” FTM tokens but instead provide a phishing link in their posts

Scammers are riding on DeFi platform Multichain’s misfortunes to run a phishing scheme on Twitter. The malicious actors are impersonating the Fantom Foundation to target FTM token holders since the Fantom blockchain bridge bore the brunt of the hack. The scheme promises all Fantom users a share of emergency FTM tokens with the tweet including a phishing link.

Scammers Promise Emergency FTM Tokens

The now-deleted tweet contained a link leading to a nicely done web page that requests visitors to connect their wallet to check whether they are eligible for the “emergency FTM” tokens. Except for the option to connect your wallet, everything else, from the color scheme to fonts, links, is a replica of the actual Fantom website making it easy for affected FTM holders to fall victim.

Multichain has however disclosed that all its users can “claim their refund” adding that users should cancel any “app approvals” they may have granted to the protocol. According to Multichain “a temporary compensation” is available due to “negative market sentiments.” 

The announcement comes before the protocol openly admits to being hacked,  providing an explanation of how it happened or disclosing the amount of funds lost in the attack. 

$126 Million Siphoned from Multichain

Some blockchain analysts have indicated that Multichain lost over $126 million in the hack with a huge chunk siphoned from the Fantom bridge. 

Tether and Circle have already frozen over $65 million worth of assets transferred from Multichain. The Multichain hack comes roughly two months after its co-founder and CEO only known as Zhaojun went missing in May. Reports indicated that the CEO is the only one with the power to authorize technical changes on the platform.

With affected Multichain users exploring ways to regain even a fraction of their funds, some, if not most, are likely to be scammed off their remaining funds.