"Jobless and a bit poorer, thanks guys!" he wrote. "You're passionate about its technology, you wanna be part of it. You DCA. You hodl. You do everything you can to do things right... you're passionate, love the space, the tech. The people. Your willingness to get a job in Web3 is enormous! I stand for on-chain values, and I wanna be a part of the wave!" he wrote in frustration, trying to explain how he'd gotten scammed. "The apparent legitimacy of these [web3 job listing] sites made me remove the 'watch out filter', and boom."
Scammers target victims via web3 job search boards
Scammers are constantly coming up with creative new ways to pull off their scams, and the latest seems to be targeting web3-interested individuals via dedicated web3 jobs portals. One Twitter user described an experience in which he applied for a beta testing job for a play-to-earn crypto game, only to have his wallet drained when he downloaded what was supposed to be the game file, but was actually malware. He lost 875 ARB ($1,032), 60 OP ($140), and various other tokens.
Bitsonic CEO arrested for allegedly stealing $7.5 million
Jinwook Shin, CEO of the Bitsonic crypto exchange, was arrested in South Korea for allegedly stealing funds from users of his exchange. According to the prosecutors, he allegedly manipulated prices and trading volumes on the exchange in order to profit around ₩10 billion (~$7.5 million) the beginning of 2019 and mid-2021.
Bitsonic halted its services in August 2021, claiming "internal and external issues". However, even after halting withdrawals, Shin continued to offer cryptocurrency to new clients.
Cypher protocol exploited for around $1 million
The Solana-based Cypher protocol, a decentralized futures exchange, froze its smart contract after an attacker stole a little more than $1 million in Solana tokens and the USDC stablecoin.
The project attempted to contact the hacker to negotiate the return of some of the funds. Meanwhile, various community members sent NFTs to the attacker wallet, requesting the return of the funds. One of them tried to convince the hacker, writing that they believed the attacker's identity could be discovered because they used centralized exchanges with KYC to try to withdraw funds. Another simply said "give it back you shitlord".
Steadefi exploited for over $1 million
"NOTICE: Steadefi has been exploited and all funds are currently at risk," wrote Steadefi on Twitter after an attacker was able to change the contract owner to their own address — likely indicating a private key leak. So far, 624 ETH (~$1.14 million) have been siphoned from the project.
Rumors swirl that Huobi executives have been arrested, exchange is insolvent
Hong Kong crypto news outlet Techub cited two insiders when reporting on August 5 that "at least three executives" at Huobi had been detained by Chinese police for investigation. The report sparked panic, and the exchange has seen net outflows of more than $73 million in the past week. Huobi's stablecoin balances are down 33% over the same period. Investor and crypto analyst Adam Cochran tweeted of "likely Huobi insolvency", citing Binance's bulk Tether sales, paused "audit" reports, and "weird balance shifts" at the exchange.
Huobi and related people have been busy refuting the rumors, with Huobi's social media head dismissing them as "baseless malicious attacks". Huobi "advisor" Justin Sun tweeted "4".
Worldcoin warehouse in Nairobi raided by authorities
After Kenya shut down Worldcoin's operations in the country over data privacy concerns, police have raided a warehouse in Nairobi. Authorities reportedly took "machines they believe stores data gathered by the firm" as well as various documents, according to Kenyan newspaper Kahawa Tungu.
Kenya's Office of the Data Protection Commissioner has said that Worldcoin failed to accurately disclose its intentions with the project when corresponding with regulators.
Copytrader asks for "stolen" funds back after someone tricks their bot
After noticing someone set up a bot to copy his bids, NFT trader Hanwe Chang tricked the bot into purchasing multiple NFTs at hugely inflated prices. Chang purchased a large number of Azuki NFTs using an anonymous wallet, then placed an inflated 50 ETH (~$90,700) bid on one. The bot then came along and offered the same amount on the other NFTs, and Chang accepted the overpriced bids. Altogether, Chang made 800 ETH (~$1.45 million) from the scheme, draining the bot of its available funds. Azukis have been trading with a floor price of around 5 ETH (~$9,000).
The apparent operator of the bot tweeted at Chang, accusing him of theft: "We would like to discuss a bounty with you. We are offering a 10% bounty of any funds stolen from our bot, which are yours to keep if you return the remaining 90%." In other tweets they suggested they might try to take legal action against Chang for the "theft".
Revolut shuts down crypto business in the US
Revolut, a British fintech firm, has announced it will no longer offer cryptocurrency services to its US-based customer. As is becoming typical, they blamed US regulations and "crypto market uncertainty" for the decision.
Revolut had previously been one of the crypto platforms to limit US trading in Solana, Cardano, and Polygon tokens after the SEC identified those tokens as securities in lawsuits against Binance and Coinbase.
Web3 platform Nifty's shuts down
Nifty's was a web3 business backed by the likes of Mark Cuban, Joey Lubin, Coinbase, and Dapper Labs. In 2021, they raised a $10 million seed round, and launched as an NFT-focused company in July 2021 with a collection of Space Jam NFTs to accompany the widely panned box office disappointment, Space Jam: A New Legacy.
The platform later partnered with other companies to produce NFT collections for franchises including The Matrix and Game of Thrones, the latter of which featured hilariously bad artwork. The company then pivoted to a broader web3 focus as the NFT bubble collapse led the broader crypto downturn.
However, their promised web3 platform never materialized, and now the project has reached "the end of [its] runway".
Nifty's is not to be confused with Nifty Gateway, a separate NFT platform run by the embattled Gemini crypto platform.
Uwerx crypto-based freelancer platform exploited
Uwerx is a nascent project intending to build a blockchain-based freelancer marketplace, because what better concepts to combine than blockchains and the gig economy? Sadly for them, just after completing their token presale, it was hit with a flash loan exploit that enabled an attacker to siphon 176 ETH (~$324,000) from the platform.
The project was audited by SolidProof and InterFi. The project announced that they intended to relaunch the token, and asked the exploiter to consider returning 80% of the funds, keeping 20% as a "bug bounty".