Renowned entrepreneur and Dallas Mavericks owner Mark Cuban reportedly fell victim to a cryptocurrency scam, resulting in a loss of nearly $870,000 across various digital assets.
How Mark Cuban fell victim
According to DL News, Blockchain sleuth WazzCrypto was the first to detect suspicious activities on a wallet titled “Mark Cuban 2” on EtherScan.
Cuban was caught off guard when DL News informed him about the suspicious wallet movements. The billionaire later confirmed that he had been scammed, saying, “Someone got me for 5 ETH.”
Cuban believes the exploit happened when he accessed MetaMask for the first time in months.
However, his losses weren’t limited to just five Ether, which is approximately worth $9,000 at current market rates. In total, Cuban lost close to $870,000, in about 10 different cryptocurrencies. Among the notable assets he lost were tokens like Lido-staked Ether, SuperRare, Ethereum Name Service, and a range of stablecoins.
Cuban suspects that he might have downloaded a compromised version of MetaMask. He recalled that his MetaMask crashed multiple times while trying to clean up his account on his phone. Following the incident, he secured his NFTs on OpenSea and transferred all his Polygon to the account.
Risks in digital transactions
The Cuban incident highlights the risks associated with crypto scams, where fraudsters create fake versions of MetaMask extensions or apps, luring users into revealing their private keys or seed phrases. Once they gain access, they can quickly empty users’ cryptocurrency wallets.
Cuban has been a vocal advocate for cryptocurrencies and blockchain technology. Earlier this year, he joined Blocto Wallet as an advisor and investor, leading it to close its Series A funding round at around $80 million. The MetaMask scenario underscores the potential risks and challenges that even experienced investors can face in cryptocurrencies’ volatile and often unpredictable world.
In addition to this incident, Cuban and his NBA team, the Dallas Mavericks, have faced cryptocurrency-related legal issues. They are currently under lawsuit over Voyager Digital, a cryptocurrency platform they promoted, described by plaintiffs as an unregulated and unsustainable fraud, similar to other Ponzi schemes.