Scammers Create Fake GIWA Blockchain, Stealing Over $2 Million

A fraudulent Ethereum Layer 2 network impersonating the unreleased GIWA mainnet has drained approximately 766 ETH from over 1,300 wallets, resulting in estimated losses nearing $2 million. The scam involved the creation of a fake blockchain that mimicked the legitimate project, which is developed by Dunamu, the parent company of South Korea's largest cryptocurrency exchange, Upbit.

The attackers launched their counterfeit Ethereum Layer 2 network on September 26, using chain ID 9134, which is reserved for the actual GIWA network. This detail was crucial to the scam's success, as it lent an air of legitimacy to the fraudulent operation. The fake network included a cross-chain bridge that accepted ETH deposits and was compatible with OP Stack technology, allowing for seamless transaction processing.

The situation escalated when DYORSWAP, a decentralized exchange, mistakenly listed the fraudulent network as the genuine GIWA mainnet, leading to a surge in deposits. By the time the scam was uncovered, approximately 766.25 ETH had been siphoned off. On September 27, GIWA confirmed that its official mainnet had not launched and that any claims of associated infrastructure were false.

In response to the incident, DYORSWAP has begun compensating affected users from its treasury, having already credited over 200 ETH to those who suffered significant losses. Smaller losses are being compensated at a rate of 40%. Both GIWA and DYORSWAP have advised users to be cautious and avoid unofficial endpoints and contracts as investigations into the theft continue.

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Source: KLEA News