Fake EOS Tokens Flooded the EOS Network, Results are Considerable

3 min read

This week does not seem to be a promising one for the EOS network. Recently, it faced a hack attack that ‘enriched’ platform with fake EOS tokens. 

The EOS network continues to be the target of the week. In order to steal roughly $ 58,000, a group of hackers shared fake EOS tokens. The amount was withdrawn from the Newdex exchange after hackers managed to create a security breach in the system.

As reported by Hard Fork, the group of cybercriminals managed to ‘share’ their tokens as real ones. They designed a new token dubbed ‘EOS’ with which they have stolen BLACK, IQ, and ADD tokens from the abovementioned exchange.

“EOS account oo1122334455 issued 1,000,000,000 fake EOS tokens. After testing the feasibility of the attack, the account began to place large buy orders. A total of 11,800 fake EOS orders were issued to purchase BLACK, IQ [sic] and ADD,” Newdex stated.

As mentioned in the statement, hackers converted the fake EOS tokens into real ones and traded further to Bittrex. At the present price, roughly $19,450 worth in 4,028 EOS tokens were stolen by cybercriminals, hence, the total amount including all stolen tokens reaches $58,000. Losses were supported by the Newdex exchange, respectively users. No data about the remuneration was shared with users yet.

The ‘vulnerability’ characteristic is the network’s most discussing issue, which is why any user can create fake tokens, including EOS and trade them. The main reason why the network couldn’t identify the tokens authenticity was the lack of smart contracts.

The EOS community elaborated:

“They deceptively present Scatter as the login and trading interface, so you feel like you’re using a DEX. In reality you aren’t sending funds to any smart contract, it’s just a regular EOS account they own ‘newdexpocket’, that doesn’t even have a smart contract running on it.”

According to CoinMarketCap, EOS has a market capitalization of $4,550,172,156 and is traded at $5.02, up 2.52%.

Author: Adriana Midrigan

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