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Popular crypto social platform Friend.tech was hit with a series of SIM swap attacks over the weekend, allowing hackers to drain thousands of dollars worth of tokens from users’ accounts.
In an Oct. 3 Twitter <a href="https://twitter.com/darengb/status/1709021872178729409" target="_blank" rel="noopener noreferrer nofollow">thread</a>, Daren (Twitter handle @darengb), a Friend.tech user with a publicly-known real name — “doxxed” in cryptospeak — wrote that he was the victim of a SIM swap attack which enabled the hacker to sell the 34 keys he owned on the platform and exit scam on the keyholders. The attacker also sold off all the other keys Daren held and drained the 22 Ethereum (ETH) he held, worth around $36,250 as of press time.
In an Oct. 4 <a href="https://twitter.com/darengb/status/1709399800267874527" target="_blank" rel="noopener noreferrer nofollow">update</a>, Daren further highlighted that “the hacker still has access” to his Friend.Tech account despite him regaining control of his mobile phone number. He explained that the hacker has “exported [his] private key and/or are still logged in on their phone.”
Daren explained that he started receiving frequent spam calls which caused him to silence his phone. This prevented him from seeing a text from his carrier, Verizon, notifying him that someone was trying to access his account. Within an hour, the hacker had successfully swapped his SIM and gained control of his Friend.Tech account and crypto wallet.
Froggie.eth also fell victim to SIM swapping, with a loss of over 20 ETH worth $33,000 as of press time, according to a Sept. 30 <a href="https://twitter.com/brypto_/status/1708055944360255600" target="_blank" rel="noopener noreferrer nofollow">post</a>. Twitter user Dipper <a href="https://twitter.com/d1pp3r__/status/1708951375793541570" target="_blank" rel="noopener noreferrer nofollow">claims</a> the same happened to him, with his account being compromised, the hacker then sold all the keys and moved the assets to another address. It is unclear whether sim swapping was involved.
<blockquote class="wp-block-quote">
 No idea how they could have compromised the wallet. Sorry to keyholders, if it was a big loss for you contact me and I’ll refund. <cite>Dipper</cite>
</blockquote>
SIM swap attacks allow hackers to take over a victim’s phone number by tricking mobile carriers into transferring the number to a SIM card controlled by the attacker. With access to the phone number, hackers can receive two-factor authentication (2FA) one-time passwords (OPTs) and use those to reset account passwords and fraudulently access accounts.
You might also like: <a href="https://crypto.news/friend-tech-targeted-by-phishing-scam-as-its-volumes-grow/" rel="noopener noreferrer nofollow"> Friend.tech targeted by phishing scam as its volumes grow </a>
Friend.tech itself was not compromised in this incident, however. The platform utilizes blockchain technology to let users purchase “keys” to private chat groups of influencers and content creators. Key prices increase as more users buy into a chat, incentivizing creators and providing potential returns for keyholders.
While innovative, Friend.tech’s linking of users’ real-world identities with their crypto wallets leaves them vulnerable to hacking techniques, like SIM swapping. Users have called for increased security measures such as 2FA to prevent similar attacks going forward.
The rapid growth of Friend.tech has exceeded even its founders’ expectations. The platform gained over 100,000 users within two weeks of launch in August 2023 and reportedly generated $25 million in its first month. However, the sustainability of its model has been called into question, with some critics <a href="https://beincrypto-com.webpkgcache.com/doc/-/s/beincrypto.com/friend-tech-looks-like-pyramid-scheme/" target="_blank" rel="noopener noreferrer nofollow">likening</a> the platform to that of a Ponzi scheme.
Friend.tech allows influencers and creators to monetize their fanbase by selling access to private chat groups and exclusive content in exchange for crypto payments. While supporters see huge potential for driving mainstream adoption of social tokens and Web3, others point to similarities with patronage platforms like Patreon and worry the app’s speculative growth could lead to a rush to sell keys and then the platform ultimately collapsing.
Read more: <a href="https://crypto.news/bots-amass-over-2-million-in-profits-on-friend-tech/" rel="noopener noreferrer nofollow"> Bots amass over $2 million in profits on Friend.tech </a>

Crypto user hacked, funds drained and investors rugged, account still inaccessible

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