Scammers Net $2M in ETH Through Fake GIWA Network Deception
Vexoda Newsroom
A fraudulent GIWA blockchain bridge has siphoned approximately $2 million in ETH from users who mistook it for a legitimate network, highlighting the dangers of unverified project launches.
A sophisticated phishing operation has resulted in the theft of approximately $2 million worth of Ether (ETH) from users interacting with a fraudulent "GIWA" blockchain network. The decentralized exchange (DEX) DYORSWAP became a victim when it mistakenly integrated with a fake bridge, believing it to be the official mainnet of the GIWA project. This incident underscores the critical need for diligence in the rapidly evolving decentralized finance (DeFi) landscape, where distinguishing legitimate projects from scams can be challenging.
The fraudulent bridge, posing as the GIWA network, successfully attracted funds from 1,335 distinct addresses, accumulating around 767.65 ETH before the scammers drained nearly all of it, leaving just over 1 ETH. The real GIWA network, an Ethereum layer-2 solution developed by Upbit operator Dunamu, officially announced that its mainnet had not yet launched and cautioned the public against false connection details circulating online. This disjunction between the fake and real project led to the significant financial loss for unsuspecting users.
The background of this incident involves the anticipated launch of the legitimate GIWA network, which is an Ethereum layer-2 solution spearheaded by Dunamu, the operator of the Upbit exchange. Dunamu had previously launched the Sepolia testnet for GIWA in September 2025, built using the Optimism OP Stack framework. Furthermore, a collaboration was announced in April involving Dunamu, Hana Financial, and POSCO International to explore a cross-border remittance system utilizing the GIWA Chain, creating an environment where a fake launch could be more easily exploited.
Following the discovery of the scam, DYORSWAP confirmed that its own smart contracts were not compromised, indicating the attack vector was through the fraudulent bridge integration. The DEX has stated it is actively tracing the deployer of the fake bridge, the sources of the initial funding, and the addresses that ultimately received the stolen ETH. In an effort to mitigate user losses, DYORSWAP has committed to compensating affected users, having already paid out over 200 ETH from its own resources.
This event carries significant implications for the broader DeFi ecosystem, particularly for users engaging with newer or less established blockchain networks. The substantial ETH sum stolen highlights the persistent threat of sophisticated scams and the potential for rapid financial loss. It also places a spotlight on the importance of thorough due diligence, often referred to as 'Do Your Own Research' (DYOR), before interacting with any new bridges or networks, even those that appear to be affiliated with reputable entities.
Moving forward, traders and DeFi users should exercise extreme caution regarding any new network launches, especially those that have not been officially verified by their development teams. Key indicators to watch include official announcements from the project's core team, the presence of audit reports, and community consensus. The ongoing investigation by DYORSWAP into the scammer's trail is also crucial for understanding how such deceptions are executed and for potentially preventing future occurrences within the crypto space.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.