Crypto scammers built an entire fake blockchain to steal over $2 million
Summary
Scammers set up a counterfeit version of Upbit-backed GIWA’s anticipated Ethereum Layer 2 network, using its expected Chain ID, a fake RPC endpoint and bridge to attract 1,333 wallets. Users deposited 767 ETH, worth about $2 million, before operators drained 766 ETH. GIWA confirmed its mainnet is not live and said no production RPC exists; the only documented network is a testnet. DYORSWAP warned users about unofficial infrastructure and offered smaller victims compensation of 40% of deposits, with larger claims subject to review. On-chain analyst Stablemark said 177 ETH had been routed through Tornado Cash, while 589 ETH remained across four wallets at the time of the update.
