Mark Cuban, esteemed entrepreneur and owner of the Dallas Mavericks, has confirmed a loss of approximately $870,000 in a recent crypto scam. This unexpected twist further underscores the intricate landscape of crypto investing, and the dangers lurking therein.
Suspicious Wallet Movements Alerted by WazzCrypto
The alarm was first raised by WazzCrypto, an on-chain investigator, who noticed unusual movements in a wallet tagged “Mark Cuban 2” on EtherScan. When Cuban was first questioned by DL News, he seemed unaware but later remarked, “Someone got me for 5 eth.”
Cuban explained, “I accessed MetaMask after several months. I suspect they were observing my actions.”
Beyond Just 5 Ether
The amount Cuban lost wasn’t restricted to the 5 Ether, currently valued at about $9,000. His total loss spanned across 10 cryptocurrencies, culminating in a staggering $870,000. This loss comprised an array of assets, including prominent names like Lido staked Ether, SuperRare, and Ethereum Name Service tokens.
A MetaMask Deception?
Reflecting on the events, Cuban shared, “I might’ve inadvertently downloaded a compromised version of MetaMask.” Instead of searching for MetaMask on Google, Cuban revealed he searched for Circle. He recalled experiencing multiple crashes on MetaMask when he tried to tidy up his account on his mobile. Shortly after, he secured his NFTs on OpenSea and moved his Polygon.
There’s an alarming rise in fraudsters crafting counterfeit MetaMask extensions. These malevolent versions lure users into revealing their private keys or seed phrases. Once these scammers get hold of this information, they’re able to effortlessly empty out crypto wallets.
“Fortunately, my other accounts remained untouched,” Cuban affirmed. He swiftly moved the remaining assets to Coinbase Custody for enhanced security.
Cuban’s Adventures in DeFi
Cuban is notably one of the rare public personalities deeply engrossed in DeFi investments. But his journey hasn’t always been smooth. Reminiscing about 2021, Cuban had faced a similar setback when he invested in Iron Finance’s TITAN stablecoin. Its price plummeted unexpectedly, wiping out his holdings. “It’s a learning curve,” Cuban commented back then.
A Month Plagued by High-Profile Hacks
This month has witnessed a slew of high-profile crypto scams. Stake.com, a leading crypto casino, lost a whopping $41 million, while CoinEx reportedly suffered a $50 million hack. Even Ethereum co-founder, Vitalik Buterin, wasn’t spared, with his X account being exploited for around $700,000.
Given the immutable nature of blockchain transfers, once a transaction is locked into the blockchain, it’s there to stay. Regrettably, nearly $900,000 in crypto was drained from Cuban’s hot wallet.
A Deep Dive into the Incident
Independent investigator, Wazz, detected the breach around 8 pm UTC on Sept. 15. Cuban’s dormant wallet for about five months had suddenly sprung into action. According to Etherscan’s logs, multiple assets, like USD Coin and Lido Staked Ether, were hastily withdrawn within mere minutes.
Further perplexing the narrative, another transaction involving $2 million in USDC was spotted. Initially, this fueled speculation, with some wondering if Cuban was merely relocating assets. However, Cuban later confirmed that this was indeed his action post the hack.
Community Insights on the Breach
The crypto community swiftly dove into speculative discussions post the hack. While some suggested Cuban might’ve inadvertently authorized a deceitful transaction, others proposed a potential private key compromise.
Cuban’s Past Trysts with Crypto Misfortunes
It’s essential to note that this isn’t Cuban’s maiden setback in the volatile crypto domain. In June 2021, he suffered a loss following Iron Finance’s debacle, which he termed as a “rug pull.”
Cuban’s recent misadventure serves as a potent reminder of the challenges and risks inherent in the burgeoning world of crypto investments. Whether you’re a newbie or an experienced investor, it’s imperative to stay updated and exercise caution at every step.
