Mark Cuban Loses $870,000 in Cryptocurrency Hack: MetaMask Compromised
Entrepreneur and investor Mark Cuban, known for his prominent role on the television show “Shark Tank” and his ownership of the NBA’s Dallas Mavericks, recently fell victim to a cryptocurrency hack that left him $870,000 lighter. The incident, which occurred on the night of September 15, has raised concerns about the security of cryptocurrency assets, even for high-profile individuals with significant resources.
The hack came to light when on-chain investigator Wazz spotted unusual transactions in a MetaMask wallet labeled ‘Mark Cuban 2’ on EtherScan. The wallet had been dormant for more than five months, making the sudden activity particularly suspicious. Cuban subsequently confirmed the hack to DL News, revealing the loss of 5 Ethereum (ETH) tokens valued at approximately $8,170 based on current market prices.
Lmao, did Mark Cuban’s wallet just get drained?
Wallet inactive for 160 days and all assets just moved pic.twitter.com/vWnMZFyHB5
— Wazz (@WazzCrypto) September 15, 2023
However, the damage extended beyond just Ethereum. The attacker made off with various assets from Cuban’s MetaMask wallet, including USD Coin (USDC), Polygon (MATIC), Lido staked Ethereum (stETH), as well as tokens from SuperRare and Ethereum Name Service. At the time of reporting, most of these pilfered assets were still residing in the hacker’s wallet.
To mitigate further loss, Mark Cuban swiftly took action. He managed to transfer approximately $2 million USDC from the compromised wallet to Coinbase Custody, securing a substantial portion of his remaining assets from potential theft.
Cuban’s response to the attack raised questions about the nature of the intrusion. According to him, he suspects that he inadvertently downloaded a malicious version of the popular MetaMask cryptocurrency wallet, which ultimately led to the hack. In an interview with DL News, Cuban stated, “I went on MetaMask for the first time in months. They must have been watching.”
Malicious actors frequently create counterfeit versions of popular cryptocurrency tools like MetaMask to deceive unsuspecting users into disclosing private keys or seed phrases. Once these bad actors gain access to a user’s wallet, they can easily drain the assets within.
Cuban shared that his MetaMask application experienced unusual crashes before the hack. In response, he took proactive measures to safeguard his non-fungible tokens (NFTs) on OpenSea and transferred his MATIC assets from the compromised wallet. However, it was only a few hours later that Cuban realized he had logged into MetaMask for the first time in months. He hinted at the possibility that the hacker had been patiently waiting for the right moment to strike.
Cuban took responsibility for the transfer of $2 million USDC to Coinbase Custody, affirming that he initiated the move to protect any remaining funds.
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