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web3 is going just great
@web3isgoinggreat.com
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tracking only some of the many disasters happening in crypto, defi, NFTs, and other blockchain-based projects since 2021 • created by @molly.wiki

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Former NYC Mayor Eric Adams accused of rug pull as NYC Token crashes

January 12, 2026
https://www.web3isgoinggreat.com/?id=nyc-token-crash
Former NYC Mayor Eric Adams accused of rug pull as NYC Token crashes Shortly after losing his campaign for re-election as mayor of New York City, Eric Adams announced he would be launching "NYC Token". He's pitched the project as a fundraising tool to fight "antisemitism" and "anti-Americanism", and as a project to "teach our children how to embrace the blockchain technology." He launched the project on January 12, and buyers piled in in hopes of being early to a high-profile crypto token endorsed by a public figure. However, within hours, the team began pulling liquidity as the price peaked, extracting around $2.5 million. As the price began to fall, the team added back around $1.5 million, leaving around $1 million unaccounted for. Additionally, on-chain researchers observed at least one wallet that spent almost $750,000 to purchase around 1.5 million $NYC around 10 minutes before the token was publicly announced, leading to speculation around insider trading. However, because of the token price crash after the team began pulling liquidity, the apparent insider ultimately lost around $500,000. People were quick to accuse Adams, or his unidentified crypto team, of rug-pulling buyers. Adams and the project's social media account have claimed that the team was simply moving or "rebalanc[ing]" liquidity, though they have not yet offered any explanation as to where the missing $1 million went.
January 13, 2026 at 5:29 PM
web3isgoinggreat.com
Truebit exploited for over $26 million

January 8, 2026
https://www.web3isgoinggreat.com/?id=truebit-exploit
Truebit exploited for over $26 million A bug in a smart contract belonging to the Ethereum-based Truebit project allowed an attacker to steal 8,535 ETH (~$26.4 million). The thief targeted one of the project's older contracts — deployed in 2021 — which contained a bug in which the price calculation to mint sufficiently large quantities of the protocol's TRU token would overflow, erroneously allowing people to mint large amounts of TRU for next to nothing. The exploiter took advantage of this by minting TRU and swapping it for ETH, ultimately causing the TRU token price to crash 99.9%. Another subsequent attack saw around $300,000 more drained from the project. Truebit acknowledged the hack and urged users not to interact with the vulnerable smart contract.
January 13, 2026 at 2:41 AM
web3isgoinggreat.com
Unleash Protocol exploited for $3.9 million

December 30, 2025
https://www.web3isgoinggreat.com/?id=unleash-protocol-exploit
Unleash Protocol exploited for $3.9 million Unleash Protocol, a project promising to allow creators to register their intellectual property on the blockchain, has been exploited for around $3.9 million. An attacker was able to gain administrative access, despite the project's governance system ostensibly being protected by a multisignature wallet. They then deployed a new smart contract, which allowed them to siphon assets from the project. The attacker then bridged the funds to ETH and laundered them via the Tornado Cash cryptocurrency mixer.
December 31, 2025 at 1:01 AM
web3isgoinggreat.com
Flow blockchain exploited for $3.9 million

December 27, 2025
https://www.web3isgoinggreat.com/?id=flow-infinite-mint-exploit
Flow blockchain exploited for $3.9 million The Flow blockchain suffered an exploit in which an attacker was able to mint a large number of wrapped FLOW tokens, which they then swapped to tokens on other blockchains. Ultimately around $3.9 million was stolen, and the FLOW token dramatically plunged in price. Some crypto exchanges, such as Upbit and Bithumb, halted withdrawals and deposits for FLOW after the exploit was discovered. Flow later confirmed the exploit, and said that validators "executed a coordinated halt" of the network to shut down the attack.
December 27, 2025 at 11:09 PM
web3isgoinggreat.com
Binance's Trust Wallet extension hacked; users lose $7 million

December 25, 2025
https://www.web3isgoinggreat.com/?id=trust-wallet-hack
Binance's Trust Wallet extension hacked; users lose $7 million The Trust Wallet Chrome extension was compromised in an apparent supply chain attack. People who used the non-custodial wallet extension after it updated to version 2.68 lost funds after malicious code was introduced to exfiltrate wallet seed phrases so that the attackers could then drain the wallets. Victims have lost a combined $7 million due to the compromise. Binance founder Changpeng Zhao — who supposedly has no managerial role at Binance after he and the company were criminally charged in the US — announced that Binance would reimburse users who lost funds.
December 27, 2025 at 6:22 PM
web3isgoinggreat.com
Crypto trader loses $50 million to address poisoning attack

December 19, 2025
https://www.web3isgoinggreat.com/?id=0xcB8078-address-poisoning
Crypto trader loses $50 million to address poisoning attack A crypto trader lost almost $50 million in the Tether stablecoin after falling victim to an address poisoning attack. Because blockchain wallet addresses are long, random alphanumeric strings, traders often use the first and/or last several characters to quickly recognize wallets, and copy and paste regularly used wallet addresses from their transaction history. This has given rise to a type of scam known as "address poisoning", where scammers generate wallet addresses that share similar beginning and end characters, and use them to send transactions to wealthy victims. If they're lucky, as they were in this case, the victim will accidentally copy the similar looking scammer's wallet address when making a transfer of significant size. After the theft, the victim sent an on-chain message to the scammer, offering a $1 million "bounty" for the return of the remaining funds. They threatened, "We have officially filed a criminal case. With the assistance of law enforcement, cybersecurity agencies, and multiple blockchain protocols, we have already gathered substantial and actionable intelligence regarding your activities." However, there's been no activity from the wallet since the message, and the thief had long since begun laundering the funds via Tornado Cash.
December 23, 2025 at 8:07 PM
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Yearn Finance suffers fourth exploit only weeks after third

December 16, 2025
https://www.web3isgoinggreat.com/?id=yearn-finance-exploit-4
Yearn Finance suffers fourth exploit only weeks after third Only weeks after losing $6.6 million to an infinite mint exploit, a Yearn Finance smart contract has again been exploited, allowing an attacker to make off with around 103 ETH (~$300,000). The affected contract is a legacy contract that was part of the Yearn v1 project (once known as iearn). The attacker used a flash loan to manipulate the price of tokens in the vault, allowing them to withdraw the iearn assets, which they then swapped for ETH. This is Yearn's fourth hack, following the $6.6 million theft in November, an $11 million exploit in 2023, and an $11 million exploit in 2021. Yearn also lost around $1.4 million in 2023 in connection to the Euler Finance attack.
December 17, 2025 at 2:12 AM
web3isgoinggreat.com
Ribbon Finance suffers $2.7 million exploit, plans to use "dormant" users' funds to repay active users

December 12, 2025
https://www.web3isgoinggreat.com/?id=ribbon-finance-exploit
Ribbon Finance suffers $2.7 million exploit, plans to use "dormant" users' funds to repay active users Ribbon Finance, which has partially rebranded to Aevo, has lost $2.7 million after attackers exploited a vulnerability in the smart contract for legacy Ribbon vaults that enabled them to manipulate oracle prices and withdraw a large amount of ETH and USDC. Ribbon has announced it will cover $400,000 of the lost funds with its own assets. However, Ribbon is also offering users a lower-than-expected haircut on their assets by assuming that some of the largest affected accounts will not withdraw their assets, having been dormant for several years. While this plan may benefit active users, it seems like it could get very messy if those dormant users do wish to withdraw their assets and discover they've been used to pay others.
December 15, 2025 at 7:32 PM
web3isgoinggreat.com
Prysm consensus client bug causes Ethereum validators to lose over $1 million

December 4, 2025
https://www.web3isgoinggreat.com/?id=prysm-bug
Prysm consensus client bug causes Ethereum validators to lose over $1 million Ethereum validators running the Prysm consensus client lost around 382 ETH ($1.18 million) after a bug resulted in delays that caused validators to miss blocks and attestations. Though the bug had been introduced around a month prior, it did not affect validators until Ethereum completed its "Fusaka" network update on December 3. Around 19% of Ethereum validators use the Prysm consensus client, which is developed by Offchain Labs.
December 14, 2025 at 5:53 PM
web3isgoinggreat.com
Binance employee suspended after launching a token and promoting it with company accounts

December 8, 2025
https://www.web3isgoinggreat.com/?id=binance-employee-suspended
Binance employee suspended after launching a token and promoting it with company accounts Binance has announced that the company has suspended an employee who used the platform's official Twitter accounts to promote a memecoin they had launched. The token, called "year of the yellow fruit", pumped in price after official Binance accounts coaxed followers to "harvest abundantly". Binance publicly acknowledged that an employee had been suspended for misconduct over the incident. "These actions constitute abuse of their position for personal gain and violate our policies and code of professional conduct," Binance tweeted from its BinanceFutures account. After this announcement, the memecoin token price spiked even further. Earlier this year, Binance fired another employee after discovering they had used inside information to profit from a token sale event.
December 8, 2025 at 7:43 PM
web3isgoinggreat.com
Aerodrome and Velodrome suffer website takeovers, again

November 22, 2025
https://www.web3isgoinggreat.com/?id=aerodrome-and-velodrome-website-takeovers
Aerodrome and Velodrome suffer website takeovers, again Attackers redirected users intending to visit the websites for the decentralized exchanges Aerodrome and Velodrome to their own fraudulent versions using DNS hijacking, after taking control of the websites' domains. The platforms urged users not to visit the websites as they worked to regain control. This is the second time such an attack has happened to these same platforms, with another DNS hijacking incident occurring almost exactly two years ago. In that instance, users lost around $100,000 when submitting transactions via the scam websites.
November 23, 2025 at 8:40 PM
web3isgoinggreat.com
Cardano founder calls the FBI on a user who says his AI mistake caused a chainsplit

November 21, 2025
https://www.web3isgoinggreat.com/?id=cardano-founder-calls-the-fbi
Cardano founder calls the FBI on a user who says his AI mistake caused a chainsplit On November 21, the Cardano blockchain suffered a major chainsplit after someone created a transaction that exploited an old bug in Cardano node software, causing the chain to split. The person who submitted the transaction fessed up on Twitter, writing, "It started off as a 'let's see if I can reproduce the bad transaction' personal challenge and then I was dumb enough to rely on AI's instructions on how to block all traffic in/out of my Linux server without properly testing it on testnet first, and then watched in horror as the last block time on explorers froze." Charles Hoskinson, the founder of Cardano, responded with a tweet boasting about how quickly the chain recovered from the catastrophic split, then accused the person of acting maliciously. "It was absolutely personal", Hoskinson wrote, adding that the person's public version of events was merely him "trying to walk it back because he knows Hoskinson's decision to involve the FBI horrified some onlookers, including one other engineer at the company who publicly quit after the incident. They wrote, "I've fucked up pen testing in a major way once. I've seen my colleagues do the same. I didn't realize there was a risk of getting raided by the authorities because of that + saying mean things on the Internet."
November 23, 2025 at 8:15 PM
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Crypto tracking platform DappRadar shuts down, citing financial woes

November 17, 2025
https://www.web3isgoinggreat.com/?id=dappradar-shuts-down
Crypto tracking platform DappRadar shuts down, citing financial woes Amid a month of falling crypto prices, the crypto tracking platform DappRadar has announced it will be shutting down after seven years of operation. "Running a platform of this scale became financially unsustainable in the current environment," the company announced on Twitter. The company had previously raised several rounds of financing, with a $2.3 million seed round in 2019 and a $5 million Series A in 2021.
November 18, 2025 at 7:12 PM
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Elixir shuts down deUSD after Stream Finance halt

November 6, 2025
https://www.web3isgoinggreat.com/?id=elixir-shuts-down-deusd
Elixir shuts down deUSD after Stream Finance halt After the defi yield platform Stream Finance announced a $93 million loss, Elixir announced it would be discontinuing its deUSD synthetic stablecoin. Stream Finance owes $68 million to Elixir, and holds around $75 million deUSD. Elixir has announced that they plan to allow deUSD holders to redeem their tokens for USDC through a process that will also eliminate the risk of Stream Finance cashing out their deUSD without repaying their loan. According to Elixir, "Stream comprised of 99%+ of the lending positions (and has decided to not repay or close positions)".
November 7, 2025 at 3:31 PM
web3isgoinggreat.com
Moonwell accrues almost $3.7 million of bad debt after oracle malfunction

November 4, 2025
https://www.web3isgoinggreat.com/?id=moonwell-oracle-malfunction
Moonwell accrues almost $3.7 million of bad debt after oracle malfunction The Moonwell lending protocol, built on the Base Ethereum L2, wound up with $3.7 million in bad debt after an attacker took advantage of an oracle malfunction that caused the price of wrsETH to be massively inflated. The Chainlink oracle used by the project erroneously reported that a single wrsETH token (Kelp DAO's wrapped restaked ETH) was priced at around 1.65 million ETH (~$5.8 billion). Within 30 seconds of the oracle reporting bad data, an attacker took advantage of the error to borrow huge amounts of tokens, which they then swapped to other tokens to cash out. Ultimately the attacker profited around 295 ETH (~$1 million), but the protocol was saddled with significantly more bad debt that the team will now have to grapple with.
November 7, 2025 at 3:12 PM
web3isgoinggreat.com
Stream Finance halts activity after $93 million loss

November 4, 2025
https://www.web3isgoinggreat.com/?id=stream-finance-loss
Stream Finance halts activity after $93 million loss The Stream Finance defi yield project announced that "an external fund manager overseeing Stream funds disclosed the loss of approximately $93 million in Stream fund assets." Stream announced that they were in the process of withdrawing remaining liquid assets, and had halted all deposits or withdrawals. They also announced they had retained a law firm to investigate the "incident". The project didn't disclose who the fund manager was, or the circumstances in which the "loss" occurred. The Staked Stream USD token depegged on November 3, and crashed further following the announcement.
November 4, 2025 at 3:43 PM
web3isgoinggreat.com
Garden hacked for $11 million

October 30, 2025
https://www.web3isgoinggreat.com/?id=garden-hacked-for-11-million
Garden hacked for $11 million The Garden bitcoin bridge suffered a roughly $11 million loss after one of its solvers was compromised. These solvers essentially act as market makers for the protocol. Some blockchain sleuths have questioned whether the affected solver, which Garden described as a separate entity, may actually be operated by the same team as Garden. There wasn't much sympathy to be had for Garden after this exploit. The protocol had recently announced hitting a milestone of bridging more than $2 billion in assets, but the celebration was criticized after zachxbt pointed out that a substantial portion of the bridged funds were proceeds of crimes being laundered to evade detection and recovery.
November 3, 2025 at 6:28 PM
web3isgoinggreat.com
Balancer exploited for at least $110 million

November 3, 2025
https://www.web3isgoinggreat.com/?id=balancer-exploit-2
Balancer exploited for at least $110 million The defi protocol Balancer suffered a major exploit that drained over $110 million across several blockchains, including Ethereum, Polygon, Base, and Sonic. Attackers exploited faulty access control in the manageUserBalance function of Balancer's v2 smart contract, enabling unauthorized internal withdrawals. The stolen tokens included 6,850 osETH, 6,590 wETH, and 4,260 wstETH, later consolidated into new wallets likely for laundering. The exploit also impacted forked protocols like Beets Finance, which lost around $3 million. Balancer's BAL token dropped over 10% following the theft. This was Balancer's third major security incident since 2020, despite prior audits by OpenZeppelin and Trail of Bits.
November 3, 2025 at 3:29 PM
web3isgoinggreat.com
Cryptomus fined $127 million for compliance failures

October 22, 2025
https://www.web3isgoinggreat.com/?id=cryptomus-fine
Cryptomus fined $127 million for compliance failures The Canadian cryptocurrency exchange Cryptomus has been fined CA$177 million (US$127 million) by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) for failing to report more than 1,000 suspicious transactions linked to darknet markets, distribution of child sex abuse material, fraud, ransomware, and sanctions evasion. It additionally failed to report more than 7,500 transactions originating from Iran, and more than 1,500 high-value transactions. Cryptomus was temporarily banned from trading in British Columbia in May. The CA$177 million fine smashes Canada's previous record for the largest penalty they've ever imposed. That honor previously went to KuCoin, another crypto exchange fined CA$20 million (US$14.3 million) in September.
October 28, 2025 at 6:08 PM
web3isgoinggreat.com
Fortress Trust is insolvent

October 22, 2025
https://www.web3isgoinggreat.com/?id=fortress-trust-insolvency
Fortress Trust is insolvent Nevada's Financial Institutions Division has issued a cease and desist order against Fortress Trust, stating that the firm is "on the verge of insolvency". The company admits it "failed to safeguard assets under its custody and is unable to meet all customer withdrawals". The company has only around $1.3 million in actual assets in custody, while it owes customers around $12.3 million. In 2023, Fortress experienced a $15 million theft. Though the company originally announced it would be acquired by Ripple, which had agreed to cover the shortfall, the deal eventually fell through. It's not clear how — or if — the funds were ever restored. Fortress's insolvency has strong parallels to that of Prime Trust, another trust company that shares a founder in Scott Purcell. NFID issued a cease and desist to Prime Trust in June 2023 after finding the company was insolvent; in bankruptcy proceedings, that company later blamed much of the insolvency on losing access to a
October 27, 2025 at 11:59 PM
web3isgoinggreat.com
Paxos accidentally mints more than twice the global GDP in PayPal stablecoins

October 15, 2025
https://www.web3isgoinggreat.com/?id=paxos-accidental-mint
Paxos accidentally mints more than twice the global GDP in PayPal stablecoins Paxos, the issuer of PayPal's PYUSD stablecoin, accidentally minted 300 trillion of the supposedly dollar-pegged token. For context, this is approximately 2.5x the global GDP, and around 125x the total number of US dollars actually in circulation. Paxos later announced that the mint was an "internal technical error", and that they had burned the excess tokens. While PayPal promises its customers that "Reserves are held 100% in US dollar deposits, US treasuries and cash equivalents – meaning that customer funds are available for 1:1 redemption with Paxos," there clearly isn't much in the way of safeguards to ensure that is always the case. As with most stablecoin issuers, Paxos merely issues self-reported and unreviewed portfolio reports, and monthly third-party attestations (not audits) of reserves.
October 15, 2025 at 9:37 PM
web3isgoinggreat.com
Hyperliquid user loses $21 million to private key leak

October 10, 2025
https://www.web3isgoinggreat.com/?id=0x0cdc-theft
Hyperliquid user loses $21 million to private key leak An attacker apparently obtained access to a victim's private key, enabling them to drain $21 million in various crypto assets. The attacker quickly bridged the stolen funds to ETH, then bounced through various addresses in hopes of disguising their origin and making the funds more challenging to recover. Some originally feared that the theft was enabled by an exploit on Hyperliquid itself, shortly after another Hyperliquid-based project was compromised, but the theft appears to have been a key leak rather than an exploit on the protocol.
October 14, 2025 at 11:30 PM
web3isgoinggreat.com
Reddit shuts down its NFT avatars project

August 28, 2025
https://www.web3isgoinggreat.com/?id=reddit-shuts-down-nft-avatars
Reddit shuts down its NFT avatars project Three years after launching "Collectible Avatars", the NFT project they didn't want to call "NFTs" because they were already becoming kind of cringe, Reddit has decided to pull the plug. "Well, this is one of those posts. The kind that we hoped we would never have to write," they wrote. Reddit has ended submissions for new avatars, and will shut down its avatar shop, collection display on profiles, and NFT wallet feature. The feature is apparently so unused that the shutdown announcement garnered zero comments in the r/CollectibleAvatars subreddit. Besides posts relating to the shutdown, the most recent post in the subreddit was a year old. This is the second blockchain-based feature Reddit has sunset, following the October 2023 decision to end their "Community Points" feature.
October 14, 2025 at 10:52 PM
web3isgoinggreat.com
Abracadabra loses more "Magic Internet Money" to third hack in two years

October 4, 2025
https://www.web3isgoinggreat.com/?id=abracadabra-exploit-3
Abracadabra loses more "Magic Internet Money" to third hack in two years In their third major hack in two years, the Abracadabra defi lending project lost $1.8 million of their Magic Internet Money stablecoin. An attacker took advantage of a bug in the project smart contracts to borrow more than their provided collateral would normally allow. The attack was funded via Tornado Cash, and the exploiter then swapped the stolen tokens for ETH and laundered them back through Tornado. The project disclosed the theft, describing the exploit as affecting "some deprecated contracts". They downplayed the theft, saying they'd bought back the stolen assets using treasury funds. Abracadabra previously suffered a $13 million theft in March 2025, and a $6.5 million theft in January 2024.
October 6, 2025 at 1:53 PM
web3isgoinggreat.com
SBI Crypto likely suffers $21 million theft

September 24, 2025
https://www.web3isgoinggreat.com/?id=sbi-crypto-theft
SBI Crypto likely suffers $21 million theft Crypto sleuth zachxbt observed $21 million in "suspicious outflows" from SBI Crypto, a crypto mining subsidiary of the Japanese SBI Group. The money was quickly laundered through instant exchanges and Tornado Cash, in ways zachxbt observed were similar to tactics of North Korean crypto thieves. SBI Crypto has not made any public statements addressing the apparent theft.
October 2, 2025 at 4:36 PM