Chatbot Suggests Fake Crypto Site, Scammer Drains $2.2M

A recent incident highlights the risks of relying on AI-powered chatbots for financial advice. A user asked ChatGPT, an AI chatbot, where to swap sFLR, Flare's liquid-staked token, for wrapped FLR. The chatbot responded with a link to sceptre.network, which appeared to be a legitimate site. However, the link was actually a phishing site controlled by scammers.

The user, Alex, connected their wallet and approved an unlimited spending limit, allowing the scammers to drain 1,904,513 FXRP from his account. This is approximately 1.3% of the entire FXRP supply today. The total amount lost in this scam is estimated to be over $2.2 million.

The scammers had been using this phishing site since April 2026, and it's likely that Alex was not the only victim. The site used a technique called 'approval phishing,' where users are tricked into approving unlimited spending limits on their wallets.