AI-driven Phishing and Token Exploits Drain $45.8M from Web3
Web3 security suffered major losses in October as AI-driven phishing and complex token exploits accounted for $45.84 million in theft, according to GoPlus Security. Phishing-as-a-Service platforms powered by AI tools enabled rapid fake website creation, leading to $3.5 million in phishing losses. Notable incidents included 107 GMGN users losing $700,000, a $325,000 theft via a malicious “increaseAllowance” on Wrapped Bitcoin (WBTC), and $440,000 lost through a fraudulent “permit” transaction. The largest breach involved SBI Crypto, with $21 million in BTC, ETH, LTC, DOGE, and BCH drained and allegedly laundered via Tornado Cash by suspected state-backed hackers. Meanwhile, honeypot token scams jumped 600% month-on-month to 2,189 tokens on Binance Smart Chain, Ethereum, and Base, trapping investors in illiquid contracts. Elsewhere, the Astra Nova token RVV plunged after a social media hack caused a $10.3 million sell-off, and Garden Finance users lost $10.8 million to a DeFi exploit. These events underscore evolving threats to Web3 security from AI techniques, social engineering, and embedded contract fraud.
Bearish
These large-scale AI-driven phishing and exploit incidents undermine confidence in Web3 security, triggering risk-off sentiment among traders. Historically, high-profile breaches like the Poly Network hack in 2021 led to immediate price declines and increased volatility. In the short term, investors may reduce exposure to vulnerable DeFi tokens and tighten due diligence, pressuring prices of affected assets. In the long run, the market could benefit from stronger security measures, but confidence restoration will take time, keeping sentiment cautious.