Phishing Scam: $3 Million Gone in One Click

The crypto industry remains a study in contradictions soaring institutional interest on one side, relentless security failures on the other. In the span of a week, three developments revealed just how wide the gap has grown between promise and peril.

$3 Million Gone in One Click

On Wednesday, blockchain sleuths at Lookonchain flagged a $3.05 million USDT loss to a phishing scam, a stark reminder that crypto's biggest vulnerability may no longer be code, but human error.

According to reports, the victim signed a malicious transaction without verifying the full contract address. In phishing scams like this, attackers mimic wallet addresses, hoping users overlook key characters. In this case, that oversight cost millions, as per a report by Cointelegraph.

While this kind of social engineering isn't new, it's becoming far more effective. CertiK's 2024 Web3 Security report labeled phishing the costliest threat of the year, with over $1 billion lost across 296 incidents. Three of those crossed the $100 million mark.

"One wrong click can drain your wallet," Lookonchain warned, as quoted by Cointelegraph.

UK Opens the Gates for Crypto ETNs

In contrast to the fear gripping investors, regulators in the UK are loosening the reins. On Friday, the Financial Conduct Authority (FCA) reversed a 2021 ban on retail access to crypto exchange-traded notes (cETNs), with the rule change taking effect from October 8.

The move signals a shift in tone from the FCA, which previously cited "extreme volatility" as justification for the restrictions. With institutional access greenlit last year, retail investors will now get a shot too.

CryptoUK board adviser Ian Taylor called it a win for consumer choice:

"Until now, the UK has been an outlier. This change reflects progress toward a more proportionate approach to consumer risk," as quoted by Cointelegraph.

However, crypto derivatives like futures and perpetual contracts remain banned for retail, suggesting regulators are still walking a fine line between access and oversight.

XRP Finds a Home in South Korea's Institutions

Meanwhile, in South Korea, infrastructure is quietly catching up to demand. Crypto custodian BDACS announced institutional XRP custody support this week, following its February partnership with Ripple.

The rollout enables secure XRP storage and management for institutions, integrated across top Korean exchanges like Upbit, Coinone and Korbit, as per the report.

"This launch strengthens our long-standing partnership with Ripple and underscores our commitment to the Korean market," BDACS said, as quoted by Cointelegraph.

That market is significant: over 25 per cent of South Koreans aged 20–50 own crypto, according to Hana Institute of Finance. The country has also seen three major banks file trademarks for Korean won–backed stablecoins this year.

Ripple, for its part, views South Korea as a gateway. With XRP adoption accelerating in Asia, including among Japanese banks, it sees the region as critical to its global payment ambitions.