Uniswap Fake Token Phishing Attack Results In $4.7 Million Loss

Through a fake token scheme targeting liquidity providers (LPs) of the Uniswap v3 protocol, attackers stole at least $4.7 million in Ethereum from cryptocurrency exchanges.

Currently, before a real ad for a new coin is released, hackers deceive consumers with similar-looking advertising or listings where they can take money without being easily identified. Fortunately, there are additional ways to protect yourself from such scams.

When compared to its centralized counterparts, the decentralized structure of platforms like Uniswap offers various advantages, including open and free token listings, which make it easier and less expensive to start new businesses. As a result, it has become a popular and easy target for scammers.

Uniswap’s decentralized exchange has grown to be one of the movement’s most well-known platforms, offering swaps between Ethereum (ETH) and various ERC-20 tokens, as well as liquidity pools and the possibility to earn returns by depositing tokens.

The Uniswap protocol is currently available in three different versions. V1 and V2 are open source and GPL-licensed. V3 is open source, with a few small adjustments.

Harry Denley, a security researcher at Metamask, was among the first to warn others about the hack. On July 11, he stated in a tweet:

As of block 151,223,32, there has been 73,399 address that have been sent a malicious token to target their assets, under the false impression of a $UNI airdrop based on their LP’s.

Denley alleges in another tweet that the “malicious token” used in the phishing assault is sent to unsuspecting clients in an attempt to trick them into thinking it is from the legitimate Uniswap V3. He also stated:

First, the malicious contract pollutes the event data so that block explorers index the “From” as the legitimate “Uniswap V3: Positions NFT” contract.

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