Phishing scams, attacks disguised as legitimate communication or websites designed to steal funds and sensitive information, cost crypto users over $12 million in August, up 72% from July, Web3 anti-scam service Scam Sniffer reported on Saturday.

Crypto phishing scams impacted 15,230 victims in August, a 67% increase from July, with the single largest loss costing one user over $3 million, according to Scam Sniffer.

The Scam Sniffer team also noted a “sharp escalation” in EIP-7702 signature scams. EIP-7702 is an Ethereum improvement proposal that allows Externally Owned Accounts to act as smart contract wallets that can execute transactions and shift funds.

Scammers and hackers exploiting this functionality drained over $5.6 million in August through three separate attacks, Scam Sniffer said.

Scams and cybersecurity exploits continue to be a problem in crypto, with over $163 million stolen in August through malicious activity. The persistent threat is a reminder for crypto users to remain vigilant and practice good anti-phishing and anti-scam security measures.

Related: Venus Protocol recovers user’s $13.5M stolen in phishing attack

Good practices for staying safe against phishing scams

Losses from crypto hacks and scams crossed $3.1 billion in the first half of 2025 amid increasingly sophisticated attack methods.

Scammers often target users by posing as legitimate and well-known cryptocurrency exchanges, either setting up fake websites with similar URL addresses to legitimate exchanges or sending fake communications to users.

These communications include emails, text messages, and even physical letters sent through the mail, designed to steal sensitive user information, including seed phrases for crypto wallets and passwords to online accounts. 

Typically, the scammers will pretend to be customer service agents from reputable exchanges, claiming that the user’s account is facing some sort of threat or cybersecurity issue and demand personal information from the user, including seed phrases.

Good practices to avoid phishing scams include checking URLs for tiny mistakes and bookmarking pages instead of using search engines or the search bar to access websites every time, verifying website links, and avoiding downloading attachments or clicking links from unknown sources. 

Phishing scams often contain misspelled words or grammatical errors, and any of these mistakes is a red flag; users should read through messages carefully to detect such errors.

Crypto and Web3 users should also use virtual private networks (VPNs) to mask their IP addresses and physical locations, never give out seed phrases or passwords, and enable two-factor authentication for sensitive online accounts.

Magazine: $55M DeFi Saver phish, copy2pwn hijacks your clipboard: Crypto Sec

]]> https://earlybirdsinvest.com/phishing-scams-cost-users-over-12m-in-august-heres-how-to-stay-safe/feed/ 0 57113 https://earlybirdsinvest.com/hayden-davis-allegedly-sniped-kanye-wests-yzy-token-to-make-12m-in-profits/ https://earlybirdsinvest.com/hayden-davis-allegedly-sniped-kanye-wests-yzy-token-to-make-12m-in-profits/#respond Mon, 25 Aug 2025 22:06:02 +0000 https://earlybirdsinvest.com/hayden-davis-allegedly-sniped-kanye-wests-yzy-token-to-make-12m-in-profits/

Blockchain analytics firm Bubblemaps released a report on Aug. 25 alleging that Hayden Davis coordinated a sniping operation on Kanye West’s YZY token that generated $12 million in profits through 14 connected wallets.

The investigation began with a timing analysis showing Davis, also known as Kelsier, received access to $57 million in previously frozen funds, with YZY launching the following day.

Davis has faced previous controversies related to the LIBRA token collapse, where he denied fraud and insider trading accusations.

A US judge unfroze $57.6 million in USDC stablecoins tied to the LIBRA token scandal on Aug. 20, giving Davis and former Meteora DEX CEO Ben Chow access to funds that were frozen in May as part of a class-action lawsuit.

Bubblemaps tracked several addresses funded from centralized exchanges the day before YZY’s launch, discovering a cluster prepared to snipe the token through funding transactions, Cross-Chain Transfer Protocol transfers, and shared deposits linking back to Davis.

The connected wallets purchased YZY tokens as early as 1:54 A.M. UTC, just one minute after the announcement. The firm noted this pattern reflects Davis’s previous involvement in sniping high-profile tokens, including MELANIA and LIBRA.

Bubblemaps said it could not confirm whether Davis had insider information or direct connections to the YZY team, but documented the coordinated purchasing pattern and profit extraction.

The investigation continues as blockchain forensics firms examine celebrity token launches for potential manipulation.

Controversial launch followed by price colapse

YZY’s controversial launch saw trading activity drive its market capitalization near $3 billion before collapsing within hours.

The token initially attracted rapid inflows, pushing its fully diluted valuation into multibillion-dollar territory before prices retreated more than 90%, leaving its capitalization closer to $137 million.

Independent analysis from Conor Grogan estimated that 94% of the initial supply was controlled by insiders, including a single multisig wallet that held 87% of tokens before dispersing.

The YZY pool featured a 1% base fee with dynamic adjustments reaching 2.68%, combined with wider bin steps introducing additional 4-5% slippage, creating estimated 10% round-trip costs for traders.

YZY is down 82% from its all-time high of $3.1633 and was trading at $0.5670 as of press time.

Mentioned in this article