Fake-chain scam before 'GIWA' even launches; Financial Supervisory Service issues consumer alert

[Financial News] A fake chain impersonating GIWA, a blockchain network being developed by Dunamu Inc., has surfaced, and investors' virtual assets have been siphoned off. The Financial Supervisory Service issued a consumer alert, saying that on-chain scams can result in assets being stolen quickly and make it difficult for victims to recover their losses.
The Financial Supervisory Service said on the 22nd that it had issued a consumer alert about the case. The move followed the disclosure during a National Assembly audit of the agency on the 19th of a case in which a scam group stole about 2.8 billion won by impersonating the GIWA blockchain network.
According to the Financial Supervisory Service, before GIWA's official launch, the scam group lured investors by spreading false information such as “surprise mainnet launch” on social media and online communities. It then made the remote procedure call (RPC) address, chain ID and bridge resemble those of the official network to prompt users to transfer their virtual assets.
The chain ID of GIWA's official network is “91342,” while the fake network used the similar number “9134.” DwiseSwap, a decentralized exchange (DEX), mistook the fake network for the real one and supported it, and users deposited Ethereum into the network's bridge. The scam group then withdrew all the virtual assets transferred through the bridge at once and stole them.
On-chain virtual asset scams can move and steal funds within minutes to hours. DEXs in particular have no centralized operator controlling assets and transactions, making it difficult to recover assets once they are sent to a scam account.
The Financial Supervisory Service warned that bridges and smart contracts claiming to support networks that have not officially launched or are still in development are scams. When a new network or chain is mentioned, people should check whether it has launched through the official website and the developer's official account. The agency also cited “surprise launches,” “airdrops” and “early participation events” not posted on official accounts as common scam and phishing tactics.
An official at the Financial Supervisory Service said, “We plan to require virtual asset service providers planning to develop new blockchains, among others, to announce their development progress and provide guidance on related precautions.”

[email protected] Lee Jeong-hwa Reporter