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Mask Network CEO loses $4M in crypto hack

Mask Network CEO loses $4M in crypto hack

Grafa2025/02/28 07:00
By: Isaac Francis
ETH-1.70%MASK-3.74%

Mask Network (CRYPTO:MASK) CEO Suji Yan's personal crypto wallet was hacked, resulting in the theft of over $4 million in digital assets.

The incident occurred on February 27, 2025, Yan's 29th birthday.

The stolen funds, including Ether (CRYPTO:ETH), WETH, MASK, and USDT (CRYPTO:USDT), were transferred to a new address before being swapped for approximately 1,700 ETH and dispersed across six wallets.

Yan suspects a private key leak or an offline attack during a private gathering where his phone was briefly unattended.

"I was in a private gathering with dozen friends and my phone was away for some minutes when I using the restroom etc," Yan tweeted.

On-chain data from Cyvers Alerts and ZachXBT revealed the suspicious outflows.

The stolen digital assets included 113 ETH, 923 WETH, 301 ezETH, 156 weETH, 90 pufET, 48,400 MASK, 50,000 USDT, and 15 swETH.

Following the compromise, the funds were swapped to ETH and funneled through six different wallet addresses.

Yan has enlisted security firms SlowMist and ZachXBT to assist with the investigation and is cooperating with authorities.

He has contacted on-chain investigators to blacklist the addresses and potentially recover the funds.

"This incident underscores the increasing sophistication of threat actors in the Web3 space and highlights the urgent need for real-time transaction monitoring, preemptive prevention and rapid incident response," said Meir Dolev, co-founder of Cyvers.

The Mask Network aims to connect Web2 services and social media with Web3 features.

Yan's Web3 project, Mask Network, was not directly affected by the hack.

After the attack, MASK tokens traded with limited changes at $2.14.

At the time of reporting, the Mask Network (MASK) price was $2.21.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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