PEPE Phishing Scam Leads to $1.39 Million Loss for Coin Holder

A PEPE coin holder has fallen victim to a phishing scam, losing $1.39 million in cryptocurrency. The PEPE phishing scam exploited Uniswap’s Permit2 feature, which allows multiple token approvals with a single signature.

Scam Sniffer, a Web3 anti-scam platform, reported the incident on Oct. 13, revealing that the stolen assets included PEPE, MSTR, and APU tokens.

How the PEPE Phishing Scam Exploited Uniswap’s Permit2

The scammers targeted the PEPE holder by sending a phishing request, using Uniswap’s Permit2 feature to gain access to the victim’s wallet. Once the holder signed the phishing signature, the scammers drained their assets and transferred them to a new address.

Scam Sniffer identified the victim’s wallet as 0xb…c7 and the scammer’s wallet as 0x22…930.

The phishing attack used the Create2 mechanism, a technique that allows scammers to generate new addresses to bypass security alerts in wallets. Once the victim approved the deceitful contract, the scammer quickly emptied the assets. Similar tactics were used last year in scams totaling over $60 million.

PEPE Coin Market Remains Bullish Despite Phishing Setback

Nevertheless, the general sentiment around the meme coin is bullish, even after a phishing scam that saw one individual lose $1.39 million in PEPE Coin. Based on the latest stats from CoinMarketCap, however, the price of PEPE has been on the rise, increasing by 5.17% in the last 24 hours.

CryptoBull_360’s analysis on the 4-hour chart points to a potential 40-50% price increase due to a symmetrical triangle pattern.

Analysts Warn of ‘Major Drop’ for PEPE Coin

In an October 8 post on X, market analyst Alan Santana pointed out a significant shift in PEPE Coin’s trends. After a 55-day rise, he observed that the trend sharply reversed last week, suggesting an imminent downturn. Santana based his prediction on technical patterns that hint at a major drop appearing on the charts soon.

Santana noted that the previous support level at $0.4 could become the new target, marking a potential 66% decline from last week’s high. He added that this bearish phase could last between 22 and 27 days, potentially prolonging the downturn into late October.

Even though there’s excitement about a “memecoin supercycle,” PEPE Coin’s momentum seems to be slipping, making its future uncertain. Sure, 85% of CoinMarketCap users might still be bullish, but the charts are telling a different story.

Crypto scams are becoming more common, and the consequences are devastating. Recently, Korean NFT artist DeeKay Kwon lost everything in a similar phishing attack. Scam Sniffer urged users to double-check all transaction requests before signing.

With the US. FBI reporting a 45% rise in crypto scams last year, leading to over $5.6 billion in losses, it’s clear that caution is crucial in this growing space.