Despite Bee Token’s pleas to take heed of security warnings, many fell prey to fraudsters.
Eager would-be investors in the Bee Token Initial Coin Offering (ICO) have fallen prey to a simple phishing scheme in which scam artists managed to steal roughly $1 million in cryptocurrency.
As reported by Bleeping Computer, hundreds of investors fell for the scam over last week, in which scammers targeted users with a phishing scheme.
The phishing emails sent pretended to be from Bee Token and urged investors interested in participating in the ICO to send funds in Ethereum to wallets under the scam artists’ control.
Bee Token‘s ICO began on 31 January and ended on 2 February after raising its 5000 ETH hard cap target ahead of schedule.
The “home sharing economy” startup wants to build a decentralized Blockchain-based marketplace for hosts, guests, and mediators involved in rentals and disputes.
As the ICO launched, Bee Token became aware that the scammers had begun phishing and quickly issued a set of security updates asking users not to send their Ethereum (ETH), the cryptocurrency of choice in the ICO, to any wallet address outside of the firm’s official website and statements.
Three wallets have been connected to the phishing scheme (1,2,3), which contained close to $1 million at the time the ICO ended. However, it is possible that more wallet addresses were used in the phishing scheme and additional funds were stolen.
“At this time, we have no evidence that any of Bee Token’s systems were compromised in this event,” the startup added. “We will update the community as appropriate once we have additional information.”
In the meantime, some participants have vented their frustration at the operation of the ICO and the high lock price of the token in comparison to pre-sale rates.