Proposal to Blacklist Systematic Scammers and refund victims who could not claim their ARB airdrop

Summary:

This proposal seeks to establish a process for reporting and blacklisting scammers who systematically steal funds from unsuspecting victims.

Background:

Recently, a scammer used a bot to collect ARB airdrops, stealing over half a million dollars from different wallets.

The wallet linked to the hacker can not be share here. (to respect the guidelines)
Although he has transferred the funds to multiple different accounts, it can be traced and viewed through the transaction history.

There has been no action taken against the scammer. This situation highlights the need for a more robust system for reporting and blacklisting scammers to prevent them from cashing out on centralized exchanges.
In addition, victims of these scams are left without recourse and suffer financial losses that could have been prevented.

Proposal:

  1. Establish a process for reporting scammers: The DAO should establish a process for reporting scammers who steal funds from unsuspecting victims. This process will include a form that victims can fill out to report the scammer’s wallet address and any other relevant information. This will ensure that victims have a way to alert the DAO to the activities of these scammers.

  2. Blacklist scammers: Once a scammer has been reported, the DAO will investigate the claim and determine whether the scammer should be blacklisted. If the DAO decides to blacklist the scammer, the scammer’s wallet address will be added to a public blacklist that will be shared with other decentralized finance platforms and centralized exchanges. This will prevent the scammer from cashing out and further harming victims.

  3. Refunds for victims: The victims who have had their airdrop stolen should be eligible for compensation, with refunds being offered up to a certain amount.
    The DAO should establish a process for victims to apply for refunds, and the DAO will use its funds to reimburse eligible victims. This will provide financial relief to victims and demonstrate the DAO’s commitment to protecting its community members.

Implementation:

To implement this proposal, the DAO will need to allocate resources for the development of the reporting and blacklisting process and establish guidelines for determining eligibility for refunds. The DAO will also need to collaborate with other decentralized finance platforms and centralized exchanges to share the blacklist and prevent scammers from cashing out. The proposal will require ongoing monitoring and evaluation to ensure its effectiveness.

Conclusion:

This proposal seeks to protect users of decentralized finance platforms from scammers who steal funds using bots or other fraudulent means. By establishing a process for reporting and blacklisting scammers and providing refunds for the victims (who are also early users), the DAO can help build trust in the decentralized finance ecosystem and prevent future scams. We must act quickly to address this problem and protect our community members.

12 Likes

Sure , Block them and give airdrop to user’s who didn’t claim their airdrop tokens

2 Likes

Problems:

What if they hacker sends stolen funds to innocent wallets? And if they send funds to a address, then directly to a new DeFi service and sell everything within the hour, what then?

3 Likes

Thanks for putting this together @Cryptocafe - I think this is a good way to go about taking action on this and actually moving forward. The scammers wallet needs to be blacklisted, and I do believe that aid should be provided to those that were affected due to the fact that this occurred through an Arbitrum developers hacked Discord account.
I support the proposal.

4 Likes

"THEN"these innocent adresses wouldn’t be so innocent “ANYMORE”

3 Likes

Thanks for the updated
It’s quite educating and creates awareness

2 Likes

I was a victim of this!!
I got scammed of $634 from trust wallet

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I just have to say youd fully regain my faith in arbitrum and then some if there was a way to be compensated. Over a month ago my metamask was hacked and drained across 8 different chains which was brutal enough. Then when i heard about the arb airdrop and saw i racked up 1620 in coins i was determined to get them from the hacked wallet. I stayed up all night then at 9 am the claim page wouldnt load, and it wouldnt load and 11 am it wouldnt load and i passed out. At 2 pm when i got up tge page finally loaded and aaid my coins had already been claimed of course they had been rushed out of the hacked wallet and the sting from the original robbery rushed back in spiraling me further into the already inescapable hole i was in. This has to happen!

2 Likes

I’m sorry to hear that! The same thing happened to me and many other people.
I was very careful with my seed phrase so I suspect that I clicked on the scam’s link in the discord.

I learned afterward that I could have defend myself with a bot that withdraw funds automatically from the wallet when the scammer try to add some ETH to pay for the gas fees.

Unfortunately, I could not make it on time and the Flashbot team could not react on time either. So that’s why I created this proposal, for the newcomers and the victims to feel more safe to interact with the ecosystem in the future.

I think it’s essential to protect users if we aim to have a broad adoption.

2 Likes

Arbiscan’s support team or related for the latest information on wallet blacklisting. They will be able to provide you with the most up-to-date and accurate information on this matter.

2 Likes

shut up sybil man :partying_face: :partying_face:

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Chúng ta không nên để những tên trộm nhởn nhơ. Đúng như tên mạng arbitrum. Chúng ta cần làm gì đó.

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Tôi cũng bị hack như bạn. Nhưng tôi đã nhanh tay hơn chúng. Tôi đã rút đc tiền của mình. Nếu lần tới bạn cần giúp tôi tính fe 50-50. Và có bẻn thứ 3 đứng ra bảo đảm.

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i do agree with you @Chyppy95 :heart:, + more security check, blacklisting hackers, reporting fraud to law enforcement, and safety practices improve user xp. For example : Euler was able to recover funds.

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Chia buồn họ làm như vô can. Ko quan tâm!

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Does this apply to the L2DAO ?

Seeing as how the have defrauded the Optimism DAO out of grant money that is now being spent on Arbitrum and ZK sync integrations…

A sybil attack was made on Optimism governance to gain more grant funds issued to the same team. Which pumped and dumped their own tokens that also exist on Arb chain.

2 Likes

I am sorry to hear you were hacked and robbed as well, it’s a special kind of god awful feeling aint it? We will continue blasting forward though and it’s gonna take more than that to dissuade me from crypto. Cheers brother here’s to hoping that some sort of compensation occurs, as someone mentioned euler recovered stolen funds, and I just read about what juno did when their airdrop was botched, bunch of badasses over there!

This scammer report could become a witch-hunt. I don’t like it!
In crypto, you have to be carefull on what you interact with. And you have to be responsible of your acts.
I disagree with that idea of interventionism. It goes against our ideal of decentralization.

1 Like

Yea why dont you send me 2600 in arb tokens right now then. Why? Because you interacted with a bogus site that was allowed to promote itself on a major platform, therefor you and only you lose. I want my arbitrum coins back

Has there been any updates in this??