PeckShield recently tweeted that a project named DataDao has a backdoor to steal user funds with approvals. They also added and asked users to stay away from it. DataDao project portrays itself as a data marketplace platform. It’s the recent project to jump on the long list of continuing scams. Users were warned of the questionable code through their tweet, which went live on January 31st, 2022.
PeckShield exposed DataDao
The project is one of an ever-growing number of probable frauds hitting the crypto industry, notably the DeFi sector. DataDAO itself has not yet responded to the notice, and there has been no conversation about it in the larger crypto community either.
They have very few followers on Twitter and a visibly unprofessional website. No users have reported the theft of their funds as of now.
Founded in 2018, PeckShield is a blockchain security firm with team members from organizations including Microsoft, Intel, and Alibaba. They also provide security solutions and tools, in addition to the DAppTotal and CoinHolmes services. A few weeks ago, they spotted 50 probable scam tokens on the Binance Smart Chain.
Growing scams in 2022
As per the reports by CNBC, there has been a whopping theft of $14 billion in cryptocurrency in 2021. Cryptocurrencies theft surged 516 percent from 2020 to $3.2 billion worth of cryptocurrency. Of this sum, 72 percent of stolen funds were obtained from DeFi protocols. Scamming was the main kind of cryptocurrency-based crime in 2021, followed by theft — most of which occurred through the hacking of crypto firms. One recent exploitation was conducted on Qubit Finance, where the hacker stoles fund worth almost $80 million.
Stay away from the scams
One precaution that investors can take is to stay away from scammy projects. Always check for legitimate and trustful projects. Ensure that you check out their website, social media channels and read out their whitepaper. Look for team images and the investors and companies that back the project. It’s your blood and sweat money, and it doesn’t make sense to lose it to scammers. It doesn’t hurt to gear up before diving.