Ethereum Security Alert: Fake Crypto Trading Bot Scam Drains Over 256 ETH

A sophisticated crypto fraud operation has been uncovered by cybersecurity firm SentinelLABS, targeting ethereum users through fake trading bot promotions on YouTube. The scam, active since January 2024, exploits dormant YouTube accounts to post tutorial videos that instruct users to deploy malicious smart contracts via Remix. These contracts are designed to drain victims' wallets, with over 256 ETH stolen so far. Senior threat researcher Alex Delamottea highlighted the severity of the scam, urging the crypto community to remain vigilant. This incident underscores the importance of cybersecurity in the rapidly evolving digital asset space, particularly as Ethereum continues to gain traction in the finance sector. Investors are advised to verify the authenticity of any trading tools or contracts before engaging with them to safeguard their assets.

Fake Crypto Trading Bot Scam on YouTube Steals Over 256 ETH

Cybersecurity firm SentinelLABS has uncovered a sophisticated crypto fraud operation exploiting dormant YouTube accounts to promote fake trading bots. The scam, active since January 2024, involves compromised smart contracts designed to drain victims' wallets.

Senior threat researcher Alex Delamottea revealed scammers post tutorial videos instructing users to deploy malicious contracts via Remix. These contracts grant attackers hidden access to victims' funds, with spoofed wallet addresses masking the theft.

The scheme has siphoned over 256 ETH ($939,000) by tricking users into sending 0.5 ETH deposits under false pretenses of gas fees. Three identified scam wallets received 7.59 ETH, 4.19 ETH, and 244.9 ETH respectively, with many more addresses involved.

Fraudsters repurpose old YouTube channels with crypto-related content, using AI-generated videos to lend credibility. The operation's scale remains unclear due to wallet reuse across multiple scams.

ETH ETFs See Record Outflows as WeWake's No-Wallet Crypto Gains Traction

Ethereum exchange-traded funds are facing their steepest reversal yet, with spot ETH ETFs recording $465 million in daily outflows on August 4. BlackRock's iShares ETH Trust led the exodus with $375 million withdrawn, followed by Fidelity's ETH Fund and Grayscale's ETH Trust. This marks a sharp contrast to July's bullish momentum, when these products attracted $5.4 billion in net inflows over 20 consecutive trading days.

While institutional investors retreat from ETH ETFs, attention is shifting toward innovative blockchain projects like WeWake Finance. The platform's ongoing presale is gaining momentum with its wallet-free accessibility approach, highlighting a growing divide between traditional crypto investment vehicles and next-generation user-centric solutions.

SharpLink Gaming Secures $200 Million to Expand Ethereum Treasury

SharpLink Gaming, a publicly traded company, has raised $200 million in a private placement led by four global institutional investors. The funds will be directed toward expanding its Ethereum (ETH) holdings, with the treasury expected to exceed $2 billion once fully deployed.

The firm has already added over 18,000 ETH to its portfolio, bringing its total holdings to nearly 500,000 ETH. This MOVE underscores growing institutional confidence in Ethereum as a strategic reserve asset.

Ethereum’s Wealth Inequality Shapes Market Dynamics

Ethereum's network exhibits stark wealth inequality, with over 74% of its total supply concentrated in the top 100 addresses as of July 2025. This imbalance mirrors trends seen in other digital currencies, raising concerns about market trust and fairness.

Market analysts warn such concentration could distort Ethereum's long-term ecosystem health. Large holders may wield outsized influence over price movements and liquidity. "A substantial portion of the total supply is concentrated in a very limited number of Ethereum addresses," notes analyst Kevin Wang.

The debate continues whether this wealth distribution will fundamentally determine Ethereum's market dynamics. Some experts suggest decentralized finance applications could gradually redistribute influence, while others foresee persistent centralization risks.

Nasdaq-Listed Cosmos Health Plans $300 Million ETH Treasury

Cosmos Health Inc., a Nasdaq-listed healthcare firm, has secured a $300 million facility to build an Ethereum-based treasury strategy. The company will issue senior secured convertible promissory notes to fund digital asset reserves, with at least 72.5% of each tranche allocated to ETH accumulation. The remaining capital will support working capital and business operations.

The move underscores Cosmos Health's broader digital transformation, integrating blockchain for supply chain tracking and wellness programs. Acquired ETH will be custodied and staked via BitGo Trust Company, leveraging institutional-grade infrastructure. CEO Grigoris Siokas called the financing a strategic milestone, offering shareholders direct exposure to Ethereum's global adoption.

This rare foray into crypto by a healthcare company highlights growing institutional interest in digital assets. The facility, backed by an unnamed institutional investor and managed by Curvature Securities, also aims to accelerate product development and expand U.S. manufacturing capabilities.

Aave Users Targeted by Scam Ads Following $60B Deposit Milestone

Decentralized finance protocol AAVE faced a phishing attack just days after achieving a historic $60 billion in net deposits across 14 blockchains. The platform's deposits have surged over 200% year-over-year, cementing its position as the first DeFi project to reach this valuation tier.

Malicious actors exploited Google Ads to promote fake Aave investment portals, with security firm PeckShight identifying aaxe[.]co[.]com as a primary phishing domain. The scam sites employed wallet-draining techniques through fraudulent transaction signatures, resulting in irreversible fund losses for connected wallets.

The timing coincides with Aave's accelerating institutional adoption, as evidenced by its tripled deposit volume since August 2024. Security analysts warn that such high-profile milestones increasingly attract sophisticated social engineering campaigns targeting crypto users.