ChainBleedv0.1 · open intel
← back to feed·PRIVATE-KEY2022-11-26 · 3y ago
Incident · SLOWMIST

Ahad Shams

Social engineering scam
Estimated loss
$4.00M
VERDICT —OUT OF SCOPE
Root cause is private-key / signer compromise — the on-chain contract behaved exactly as written. No pre-deployment source audit or bytecode review reaches the key-custody perimeter; this is operational-security territory (HSM/MPC hygiene, key rotation, hot-wallet isolation). Bytecode would show nothing wrong.
▰ METHOD
PRIVATE KEY
PRIVATE-KEY
Root cause

Root-cause analysis not yet published. The incident description below contains all currently available signal — review the attack transaction directly for definitive forensics.

Forensic narrative

Trust Wallet, a multi-chain non-custodial wallet, tweeted that Ahad Shams, the co-founder of the Web3 metaverse game engine Webverse, said that he did not disclose the mnemonic and was only stolen $4 million worth of cryptocurrency because he was photographed. Trust Wallet believes this is a security incident triggered by a social engineering attack involving an organized crime group from Rome, Italy, with known locations in Milan and Barcelona. It is reported that the theft of Ahad Shams’ funds occurred in November 2022. At that time, it hoped to complete a round of financing for the project. A scammer pretending to be an investor shared an NDA PDF file and KYC information (suspected to contain malware) to prove identity, then had Shams transfer funds to a new non-multisig wallet, and view Ahad Shams trust wallet balance, taking pictures in the process. While no private key or seed phrase was revealed, $4 million in cryptocurrency from the Trust wallet subsequently disappeared, and the crook has never been seen again. Attack method (per SlowMist): Social engineering scam. Reported loss: $ 4,000,000.

Primary source
https://twitter.com/TrustWallet/status/1623355786557632512
Sourced from
slowmist
Technical record
chain
protocol
Ahad Shams
bug_class
private-key
date_occurred
2022-11-26
loss_usd
$4,000,000
source_id
sm:ahad-shams::2022-11-26
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