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Social engineering scam that nearly cost me all of my ETH

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Re: Social engineering scam that nearly cost me all of my ETH

#111

Post by whatshisface »

pessimizer wrote: post #106
throwaway8174 wrote: post #103

Earlier quoted context omitted.

I paid off all my student loan debt and bought a house last summer because I got scammed into buying ETH about 2 years ago. Thanks for your insight though.

That just means that you were part of the scam. Hell; somebody approvingly reading this comment might be the bagholder of the future, shooting himself after all of his savings have evaporated into some ETH tycoon's pocket who dumped before the market locked up.

Now that the bag holders include major investment houses... Well, if it's possible for a scam to have a successful "exit," that's what happened. They used their funny money to tap in to the real funny money. If all cryptocurrencies went to 0 tomorrow I wouldn't be surprised at all if some part of the "real" financial infrastructure got caught and there had to be bailouts, which we've learned is what happens when the wrong people lose a bet.

There's too much money in the system now for it to all be from mom-and-pop marks. That's just not a viable explanation at these market capitalizations. That's not to say that average people aren't going to find out that they're long crypto - but it'd be in the way they found out they were long real estate.

Re: Social engineering scam that nearly cost me all of my ETH

#112

Post by randomhodler84 »

whatshisface wrote: post #108
nootropicat wrote: post #58

Earlier quoted context omitted.

Concentration of funds is a great advantage for borrowing.

Why would someone borrow when they already have funds? For example I heard of one guy locking up $600k collateral to borrow $300k. Makes no sense.

There are reasons, firstly tax advantage in that there is no capital gain from selling the cryptocurrency; the other is that you don’t lose your position on the cryptocurrency, ideally over time you can increase your borrow as the underlying collateral increases in fiat value.

One can also use the borrowed funds to speculate on other cryptocurrency, as a collateralized margin loan. Many lending systems offer incentives too, where you can be paid to borrow.

Re: Social engineering scam that nearly cost me all of my ETH

#113

Post by nootropicat »

whatshisface wrote: post #108
nootropicat wrote: post #58

Earlier quoted context omitted.

Concentration of funds is a great advantage for borrowing.

Why would someone borrow when they already have funds? For example I heard of one guy locking up $600k collateral to borrow $300k. Makes no sense.

Most farms require stablecoins, so the tactic is to borrow on your eth and farm with it

Re: Social engineering scam that nearly cost me all of my ETH

#114

Post by throwaway8174 »

pessimizer wrote: post #106
throwaway8174 wrote: post #103

Earlier quoted context omitted.

I paid off all my student loan debt and bought a house last summer because I got scammed into buying ETH about 2 years ago. Thanks for your insight though.

That just means that you were part of the scam. Hell; somebody approvingly reading this comment might be the bagholder of the future, shooting himself after all of his savings have evaporated into some ETH tycoon's pocket who dumped before the market locked up.

No post body was provided.

Re: Social engineering scam that nearly cost me all of my ETH

#115

Post by NicoJuicy »

randomhodler84 wrote: post #83
NicoJuicy wrote: post #80

Earlier quoted context omitted.

Programmatical organization would define the attractiveness for me.

If you remove the plutocratic and cryptocurrency components, all you have software, and as you are a developer, you already have everything you need. Don’t fall for the DAO trap, it’s a pit for fools to throw their money into.

Well, it's also about "what's possible".

Banks in my country don't have a reasonable API. There is CODA, but it's restricted to business accounts too ( and you have to pay for it).

Additionally, accountants make a huge part of the workforce. So I don't think it will be possible in the short term to "replace them" by traditional means.

Re: Social engineering scam that nearly cost me all of my ETH

#117

Post by nfw2 »

randomhodler84 wrote: post #83
NicoJuicy wrote: post #80

Earlier quoted context omitted.

Programmatical organization would define the attractiveness for me.

If you remove the plutocratic and cryptocurrency components, all you have software, and as you are a developer, you already have everything you need. Don’t fall for the DAO trap, it’s a pit for fools to throw their money into.

I had never heard of DAOs before this and am struggling to wrap my head around it. It seems similar to any other venture with shareholders, except the shareholders need to reach consensus for any sort of financial transaction. Is that right?

So the DAO is blocking this guy with $100M sitting around from just hiring an actual designer for his air taxi project?

Re: Social engineering scam that nearly cost me all of my ETH

#118

Post by MereInterest »

chrisco255 wrote: post #11

This was a multi-week long social engineering scam targeted at Thomas. Thomas has a Discord for a drone transportation startup, and the scammers proceeded to embed themselves in the community and provide valuable labor such as web design and graphics design in order to earn his trust. Thomas's wallet is public and advertised on Twitter via his ENS domain. He had $100M+ in aETH, a derivative token provided by Aave whe…

I like the takeaways, though I'd also add an additional one, that you should use systems that have reversible transactions. That way, when you fall victim to fraud, you can use the court system to recover your losses.

Re: Social engineering scam that nearly cost me all of my ETH

#119

Post by hanniabu »

randomhodler84 wrote: post #16

Note; dude has $123M in aave wrapped ethereum that he almost granted a scammer access to. Scammers ripping off scammers. Why would you waste time with open source aircrafts. Aircrafts are a regulated thing. Nobody wants to fly in your science project. Put some of that 123 million into starting an actual company. DAOs are bullshit.

> Put some of that 123 million into starting an actual company

Yeah, start an actual company so you can raise billions with no profits and then IPO and dump on retail traders

Re: Social engineering scam that nearly cost me all of my ETH

#120

Post by randomhodler84 »

sidcool wrote: post #82
scyclow wrote: post #43

Earlier quoted context omitted.

He had $130 million wrapped up in an ERC20 token called Aave wETH (aWETH). ERC20 tokens let you approve another address to spend those tokens on your behalf. Basically, the scammers tried to trick him into approving all of his Aave wETH by creating a fake website designed to make him think that he's approving a different token with the same aWETH symbol.

So he spent $130 million to buy the NFT in the first place?

He has loaned ETH to a money market. The NFT was a Trojan horse that tricked the user into giving away their loan claim tickets.
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