Welcome to the dark web of DeFi.Authentic investigative journalism and unfiltered creative commentary
Monday, December 16, 2024
Clober Dex got clobbered.
Clober DEX's Liquidity Vault bled $500k when attackers exploited a vulnerability as old as DeFi itself - reentrancy.
The protocol's team had rolled out fresh code changes without proper security review, accidentally leaving their vault door wide open.
Trust Security and Kupia had done their due diligence, auditing the original contract thoroughly, but Clober's post-audit modifications rendered their work meaningless.
Like a horror movie victim who decides to investigate the strange noise alone, Clober walked right into one of crypto's most notorious traps.
The story serves as a textbook example of how not to handle protocol security - deploy first, think later.
When will projects learn that audits aren't magical shields against their own rushed decisions?
Read more »
Stories and Articles
• Wyoming is launching wyostable, a state-backed stablecoin. [Read more]
• Crypto-stealing scam targets Web3 workers with fake meeting apps [Read more]
• How the UK Disrupted a Multi-Billion Crypto Russian Sanctions Evasion Operation [Read more]
• Radiant Capital says North Korea posed as ex-contractor to carry out $50M hack [Read more]
• Biggest Heist Ever debuts on Netflix [Read more]
Best of Feed
• Eric Trump on #Bitcoin “I am confident that it is going to hit $1 million.” | 208 points
• Dalio Predicts Global Debt Crisis, Backs Bitcoin & Gold | 205 points
• Goldman Sachs says it would "evaluate" participating in #Bitcoin markets if regulators permit. | 189 points
• SEC Moves Forward With Bitwise’s Bitcoin & Ethereum ETF Application | 153 points
• The video that convinced SWIM to full port bridge from alphabay into ETH at $32 in March 2017 | 134 pointsRead more in Rekt's Feed»
Research of the Week
Privacy in DeFi isn’t just about safeguarding your private keys or using VPNs. The real battlefield? Your mind. Social engineering—the art of psychological manipulation—is how attackers bypass even the most robust defenses. Let’s explore how these con artists operate and, more importantly, how you can outsmart them.
Phishing leads the charge in this war on trust. The setup is simple: a scammer posing as a trusted platform or figure sends you an email, DM, or fake website. One click, one misplaced keystroke, and you’ve handed over the keys to your digital kingdom. Spear phishing ups the ante, targeting individuals with custom-crafted traps based on personal details. Smishing and vishing swap out emails for texts and calls, turning your phone into an accomplice. The endgame? Draining your wallets while you’re left wondering what went wrong.
Then there’s baiting—temptation at its finest. It could be a USB stick left conveniently on a coworker’s desk or an online ad promising free crypto if you sign up. Curious? Greedy? That’s what they’re counting on. Plug it in, click the link, or follow the instructions, and suddenly your system’s infected or your sensitive info is up for grabs. A similar scheme, quid pro quo, promises assistance or rewards in exchange for data. Think “IT support” offering to fix an issue—except the problem is fake, and now your secrets aren’t.
Pretexting adds drama to the deception. Scammers spin tales as bank officials, law enforcement, or even friends in distress. “I’m stranded, send crypto ASAP!” or “We’re verifying accounts, need your info” are the types of messages they use. Some take it offline, piggybacking their way into secure buildings by trailing behind employees who hold the door open. A little charm, a lot of nerve, and they’re in.
In DeFi, where pseudonymity and trustless systems reign, these scams hit differently. The faceless environment can make it harder to verify who’s legit and who’s not. That’s why skepticism should be your default setting. Ignore the urgency of suspicious messages, double-check identities through official channels, and never share your private keys or seed phrases. Lock down your accounts with two-factor authentication and consider password managers to avoid reusing credentials.Social engineering attacks thrive on human error and emotion. They exploit curiosity, greed, fear, and even kindness. No firewall or smart contract can shield you from a cleverly executed con. But awareness? That’s your ultimate defense.Stay sharp, stay skeptical, and above all, stay rekt-proof. Memes and Videos Hunting The Dark Web's King of Ransomware Source: Crumb Source: @AltcoinGordon
We provide an anonymous platform for whistleblowers and DeFi detectives to present their information to the community. All authors remain anonymous. We are all rekt.
Social Engineering Attacks: The Human Weakness in DeFi