Bee Token ICO Targeted With $1 Million Phishing Scam

The Bee Token ICO was derailed Thursday, a mere 25 hours after launch, as criminals made off with nearly $1 million in an apparent phishing scam.

ICO Heist

The highly anticipated Bee Token crowdsale was the target of a phishing scam on Thursday, with hackers luring hundreds of unsuspecting investors over email and Telegram. The company, which launched its crowdraise on Jan. 31, had repeatedly warned investors to be weary of fake URLs designed to siphon their funds. Bee Token also warned investors to ignore any communications claiming to represent the company.

Those warnings were echoed in a Jan. 31 tweet from the official @thebeetoken handle:

“Please do not fund ETH to addresses that have the following warning: “Warning! There are reports that this address was used in a (BeeToken) Phishing scam.”

The company has since issued a second security announcement through its Medium blog, where it said there is only one funding address and one mode of communication with investors. The blog post read:

“The Funding Address can only be found at https://tokensaleinfo.beetoken.com. The Funding Address will not be communicated via any other means. Any other address should be considered fraudulent.”

Bee Token is a home sharing platform that connects hosts and guests over a decentralized network. Its aim is to disrupt the fast-growing sharing economy by offering lower transaction fees and better incentives without the middleman.

Hacked conducted an ICO Analysis of Bee Token last month, with the project receiving a 7.5 out of 10. That puts it among the strongest ICO candidates we’ve ever reviewed.

At the time of writing, the project had raised $4.6 million with more than 26 days left to go.

ICO Theft on the Rise

Funds raised via ICO have become more attractive for cyber criminals wishing to capitalize on the booming cryptocurrency market. According to a recently published report by big-five consulting firm Ernst & Young, 10% of the ICO funds generated in 2017 have been stolen by hackers. That represents a monetary value of nearly $400 million, based on the metric used in the study.

Cryptocurrency exchanges have long been subject to security breaches, with dozens of platforms losing billions since 2014. Tokyo-based Coincheck was recently subject to the biggest crypto heist of all time after attackers diverted 500 million NEM tokens to their accounts. The thieves have since tried to unload the coins on at least six international exchanges. Their identity or whereabouts have not been verified.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Author:
Chief Editor to Hacked.com and Contributor to CCN.com, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi