Beware of Two Altcoins: One Was Hacked, The Other Turned Out To Be A Scam!

The cryptocurrency world is witnessing growing concerns with the emergence of two separate incidents that have alarmed both investors and authorities. UK police have issued a stern warning against cryptocurrency platform Coscoin, which was involved in a £215k scam, while Wise Lending, the backer of altcoin WISE, has reportedly suffered significant exploitation in the decentralized finance (DeFi) space.

Coscoin scam scandal

Investors are facing turmoil as UK police issue a warning against Coscoin, a cryptocurrency platform that promises high returns on investment. Despite claiming to use advanced artificial intelligence for quantitative trading, Coscoin has come under scrutiny for its fraudulent activities. A recent BBC report highlights the platform's questionable operations, raising concerns among investors who have been struggling to recover or access their funds since late November.

A troubling case involving 78 people in the northeast of England reveals a total loss of around €214,869, with an average loss of €2,900 per person. The North East Regional Organized Crime Unit suspects that Coscoin, believed to be based in Washington, USA, exhibits the characteristics of a Ponzi or pyramid scheme. Detective Inspector Paddy O'Keefe advises caution, urging the public to be wary of overly lucrative offers and new scams targeting previous victims.

Breach in Wise Lending behind altcoin WISE

In a separate incident, Wise Lending became the latest victim of a cybersecurity breach in the DeFi space. PeckShield Inc., a blockchain security and data analytics company, reported a significant loss of about ETH 177, which is equivalent to $464,000 at market price. The exploit, which was attributed to a flaw in Wise Lending's stock accounting logic, allowed attackers to manipulate a nearly empty market and borrow significant amounts of funds from lending markets.

The @Wise_Lending market was exploited today, resulting in ~177 ETH loss (~$464K).

Our initial analysis shows the share accounting logic is flawed with a precision issue to drain the market funds.

Here is the related hack tx: pic.twitter.com/FEtWW1wzKH

— PeckShield Inc. (@peckshield) January 12, 2024

With Oracle manipulation and attacks on platforms such as AAVE v2, Flash loan attacks have become increasingly frequent. CertiK, a player in blockchain security, has raised concerns about the vulnerability of DeFi platforms to sophisticated attacks. This incident follows the takeover of Radiant Capital, which resulted in the theft of ETH 1900 last week. The repeated pattern of exploits in the DeFi space, including previous incidents such as Onyx Protocol and Euler Finance, highlights the need for advanced security measures. As the industry faces evolving risks, maintaining trust in decentralized financial systems becomes crucial.

The recent breaches underscore the urgency of continuous improvement in protecting investors' assets and ensuring the integrity of the cryptocurrency space. As authorities investigate the Coscoin scam and Wise Lending's security breach, the cryptocurrency community faces challenges in maintaining trust and security. While investors are being reminded to exercise caution, the broader industry also needs to prioritize increasing security measures to mitigate the risks associated with decentralized finance.

Follow us on Twitter*, Facebook and Instagram to stay up to date with breaking news. Join our Telegram and Youtube channel.*