Defraud
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Tracking the stories that matter across crypto and online security.

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🚨 APPLE SUED AFTER FAKE WALLET APP DRAINS $1.8M IN BITCOIN

Three iPhone users are suing Apple after allegedly losing a combined $1.8 million in Bitcoin through a fake Sparrow Wallet app downloaded from the App Store.

The victims entered their seed phrases into the fraudulent app, allowing scammers to drain their wallets. The real Sparrow Wallet has never released an iPhone app, while its developer reportedly warned Apple about impersonators as early as January 2024.

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🚨 RUSSIA CHARGES PAVEL DUROV WITH AIDING TERRORISM

Russia’s Federal Security Service (FSB) has charged Telegram founder Pavel Durov and placed him on an international wanted list, accusing Telegram of failing to remove channels, chats and bots allegedly used to coordinate sabotage, attacks and cybercrime.

The FSB claims Ukrainian operatives used the dating bot Leo (@leomatchbot) to pose as women, send phishing links and later impersonate Russian authorities to pressure young users into committing arson and attacks. It says 46 Russians aged 12 to 22 have been detained since July 2025.

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🚨 AUSTRALIA SUES TELEGRAM

Australia’s eSafety Commissioner has taken Telegram to Federal Court, accusing the platform of failing to remove videos of terrorist executions and mass shootings after users reported them.

Court documents allege 10 of 12 reported posts remained online, while the accounts responsible were not suspended or blocked. Telegram could be fined up to A$54.6 million, equivalent to around US$38 million.

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🚨 HACKERS REPLACE COPIED CRYPTO ADDRESSES

Advertising giant Adform, whose tracking technology is embedded across many websites, suffered a breach that exposed visitors to a crypto-stealing script.

While an affected website was open, the script could monitor your clipboard and replace copied Bitcoin, Ethereum or TRON addresses with one controlled by the attacker.

You copy the correct address, but seconds later your clipboard holds theirs instead.

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πŸ‘€ $210M LOST TO CRYPTO HACKS IN JULY

The crypto industry suffered 30 major hacks in July, with total losses reaching approximately $210.3 million, up from $75.9 million in June.

The largest incidents included COLDCARD at around $70 million, followed by AFX Trade and Ostium at roughly $24 million each.

The COLDCARD theft was the third-largest crypto hack of 2026 so far, behind the Drift and KelpDAO attacks.

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🚨 BITGO CEO DARES CLAUDE TO STEAL $6M

BitGo CEO Mike Belshe has placed 100 BTC worth around $6.3 million into a wallet and publicly challenged Anthropic’s Claude AI to take it.

The challenge follows Anthropic’s disclosure that Claude models reached the real internet during security tests and gained unauthorised access to systems belonging to three organisations.

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🚨 AI FOUND THE $100M COLDCARD BUG FOR JUST $2

Claude Code reportedly uncovered the same bug behind the COLDCARD thefts in just eight minutes using a single prompt.

A second test used GLM 5.2, a coding-focused AI model, with web access disabled, requiring it to identify the vulnerability directly from the code. It found the same issue in around 20 minutes at an estimated cost of just $2.

Total losses could now be as high as 2,055 BTC, worth around $130 million, showing how cheaply AI can uncover vulnerabilities capable of causing massive damage.

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🚨 THREE MEN CHARGED IN KIDNAPPING PLOT LINKED TO MALONE LAM’S $245M BITCOIN HEIST

Federal prosecutors have revealed charges against Sedric Louis, John Davis and Martel Williams, accusing them of travelling to Connecticut to rob Veer Chetal, who later pleaded guilty over the 2024 social-engineering theft of 4,100 BTC alongside Malone Lam and Jeandiel Serrano.

The trio allegedly stalked Chetal and his parents for two days while carrying air rifles and walkie-talkies, planning to force him to transfer the stolen Bitcoin. They abandoned the plot after fearing they had been caught on security cameras.

Days later, a separate Florida crew carried out the attack, carjacking, beating and briefly kidnapping Chetal’s parents.

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🚨 HACKERS GUESS SEED PHRASES AND STEAL $5.7M

A flaw in several crypto wallet apps caused attackers to generate seed phrases that were far more predictable than they should have been.

Attackers could rapidly generate huge numbers of seed phrases until they found one connected to a real wallet, allowing them to access the funds without ever hacking the victim’s device.

At least $5.7 million has been stolen, with users of RRWallet, Bexo Wallet, NanChat, Bitcoin Libre and Milo identified as potentially affected.

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🚨 FAKE TREZOR AD LINKED TO $1.5M IN STOLEN BITCOIN

A fake Trezor website appeared as the top sponsored Google result for searches like β€œTrezor wallet,” sending users to a near-identical copy of the real site hosted on Google.

Victims were prompted to enter their 12 or 24-word seed phrase, giving attackers complete access to their wallets. Multiple users say they were drained after using the site, with more than 24 BTC worth around $1.5 million reportedly sent to the scam wallet.

Trezor says it is aware of the phishing campaign and is working with Google to have the fake pages removed.

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🚨 BYBIT SUES NORTH KOREA OVER $1.5B HACK

Bybit has filed a lawsuit against North Korea and the Lazarus Group, accusing them of carrying out the $1.5 billion hack that hit the exchange in February 2025.

A US judge has already ordered identified stolen assets to be frozen, with around $75.5 million recovered or frozen so far. Bybit says more than 90% of the stolen funds have now become untraceable after being moved through mixers, bridges and other services.

Do you think Kim will send the crypto back?

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🚨 $7.9M DRAINED FROM COINSBUY WALLETS

More than $7.9 million has reportedly been drained from wallets linked to crypto payment processor Coinsbuy across Ethereum and TRON.

The attacker quickly began swapping the stolen funds into Monero, while ChangeNOW reportedly froze a six-figure portion before it could be laundered.

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🚨 ZACHXBT EXPOSES $5M CRYPTO THEFT

On-chain investigator ZachXBT has identified Tiffany Milanovich as an alleged US-based caller linked to at least $5 million in crypto thefts.

His investigation links her to a $1.2 million Trezor theft in June and a separate $500,000 Coinbase drain, alongside recordings allegedly showing her taunting victims after their funds were stolen.

ZachXBT also published chats, wallet activity and videos allegedly showing Milanovich flaunting crypto, luxury purchases and gambling with stolen funds.

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🚨 FAKE CRYPTO STARTUP HIRES NORTH KOREAN HACKERS

Security researchers created a fake crypto company and deliberately hired three people they suspected were working for North Korea, giving them access to company systems while secretly recording their activity.

The workers allegedly used fake or mismatched identities, AI-edited documents and VPNs to pass hiring checks. Once hired, they gained legitimate employee access, with one installing remote-access software on his work machine.

Would you have hired them?

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🚨 HACKER EXPLOITS BLOCKCHAIN TO MINT $5M IN TOKENS

Blockchain Harmony is investigating an exploit after an attacker minted around 4 billion $ONE tokens, worth roughly $5 million and equivalent to more than a quarter of the token’s existing supply.

Around $3.5 million worth of the newly minted tokens was sent to exchanges, while $ONE plunged as much as 57% from its 24-hour high to a record low before recovering.

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