Tether CEO Paolo Ardoino Warns of Rising Crypto Scams Targeting Bitfinex and Coinbase

• Regrettably, the cryptocurrency community must once again be on high alert due to a new wave of supply chain email scams.
• These malicious emails masquerade as crypto companies offering forthcoming token airdrops, specifically targeting unwary investors.
• Paolo Ardoino, CEO of Tether, has raised the alarm, urging the community to exercise increased vigilance.

Stay vigilant against the latest string of supply chain email scams in the crypto sector, warned by Tether CEO Paolo Ardoino. Find out more!

Deceptive Emails Surface in Crypto World

Recently, numerous online reports have documented cases of dubious emails being sent to members of the cryptocurrency community. These messages, purportedly from legitimate crypto firms, entice recipients with the promise of an upcoming token airdrop.

One notable example involved Bitfinex users receiving emails with exciting announcements about a supposed ERC20 airdrop of a new token called $BFX. This airdrop was falsely linked to the approval of Ethereum spot exchange-traded funds (ETFs).

The Bitfinex Scam Unveiled

The fraudulent email featured a “claim now” hyperlink that directed users to a phishing website requesting them to connect their wallets. Despite the email’s seemingly genuine appearance due to its origination from an official Bitfinex address, it was a scam.

Investigative actions by the community quickly identified the linked site as a fraudulent page. One user tested the scam with an empty wallet and discovered they were “ineligible” for the giveaway. Further investigations using Rabby Wallet revealed that any ETH transferred would be directed to another wallet, thereby confirming the deceitful nature of the operation.

Furthermore, the perpetrators created new wallets for each victim, making it exceedingly complicated to trace the number of those affected and the total funds stolen.

Similar Tactics Extend to Coinbase Users

In a parallel development, Coinbase users also reported receiving suspicious emails asking them to verify secondary addresses. Disturbingly, these emails contained racial slurs and falsely claimed that the crypto exchange was shutting down, threatening the loss of funds if users failed to confirm their secondary email for withdrawal authorization.

These emails, sent from official Coinbase addresses, raised significant concerns within the community. However, these messages were unauthorized, indicating a potential security breach.

Alerts from Industry Leaders

Tether and Bitfinex’s CEO Paolo Ardoino took to X to acknowledge the threat. He revealed that two separate sources had confirmed to him that a significant vendor, managing the mailing lists for various crypto companies, had been compromised.

CoinGecko’s COO, Bobby Ong, also issued a warning about the ongoing email attack, urging users to exercise caution with email newsletters over the coming days:

Several crypto companies may be affected via email blasts of fake token launches. Be careful with email newsletters in the coming days.

Ong assured that, despite the breach, CoinGecko’s website and mobile app remained secure and unaffected. Additionally, he clarified that CoinGecko was not launching any tokens.

Historical Context and Continued Threat

This isn’t the first time the crypto industry has faced such threats. Earlier, in January, a massive phishing campaign siphoned off around $600,000 from investors through unauthorized emails from various crypto firms.

That incident began when a compromised member of a vendor’s customer support team enabled the initial breach. Fortunately, as of the latest reports, no users have confirmed losses from this current wave of scams.

Conclusion

Given the persistent nature of these schemes, it is crucial for the crypto community to remain vigilant and skeptical of unsolicited emails, regardless of their apparent sources. Tether’s CEO Paolo Ardoino’s timely warning highlights the need for increased caution and due diligence. The ongoing vigilance and quick identification of scams are indispensable in safeguarding the community from these fraudulent activities.