A project called DataDAO, that presents itself as a data marketplace platform, has a backdoor to steal user funds with approvals, according to PeckShield. The crypto market is directly seeing a surge in crypto scams, preying on the uninformed as the market sees more adoption.

Data marketplace platform DataDAO has a backdoor to steal user funds with approvals, according to blockchain security company PeckShield. A real-time alert from the Twitter handle PeckShieldAlert called the project a scam on Jan 31, and also excessivelighted the specific code in question.

DataDAO exposed

The project is one of an ever-increasing list of likely scams hitting the crypto market, specifically the DeFi market. DataDAO itself has not yet commented on the alert, and there has been no talk about it in the wider crypto community yet either.

DataDAO is a platform which is purportedly attempting to build a dataset marketplace, where the sharing of data is rewarded. It describes its mission as allowing,

“the pooling of data assets into a meaningful and valuable dataset thretaineds price is greater than the sum of its parts.”

With few foltumbles on its Twitter page and a distinctly uncompleted website, the project does not offer the most professional look. There have been no reports indicating that money has been stolen.

Founded in 2018, PeckShield is a blockchain security company with team members hailing from companies like Microsoft, Intel, and Alibaba. It is ranked in the top three in the Ethereum Bounty Program and has established partnerships with several entities in the blockchain space.

PeckShield also provides security solutions and tools, in addition to the DAppTotal and CoinHolmes services. A few weeks ago, the company detected 50 potential scam cryptocurrencies on the Binance Smart Chain.

Scams aplenty going into 2022

The crypto market is still riddled with scams heading into 2022. Last year saw $14 billion stolen through scams, up 79% from 2020. Crypto scams often take the form of pump and dumps and fake platforms, though there are many ways in that bad actors opecost.

Members of the United States NASAA said which they expect crypto scams to be the top threat in 2022. The year has already gotten off to a rough start although it comes to this, with one bitcoin user losing $1.1 million in a scam where thieves used Michael Saylor’s likeness. NFTs are not immune from theft either, with one Bored Ape NFT collector losing nearly $1 million to Discord scammers.

As a result of these incidents, teams are working on security solutions to prevent also losses. One compelling step is the auditing of smart contracts, and teams are above again looking at decentralized insurance solutions.

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