Scammers Drain $2M in ETH from Fake GIWA Network on DYORSWAP

A fake GIWA network was used by scammers to steal over $2 million in Ether (ETH) from a bridge on decentralized exchange DYORSWAP. The scammers fooled DYORSWAP into thinking the fake mainnet was real, and then drained 766.25 ETH from 1,335 addresses. GIWA, an Ethereum layer-2 network developed by Upbit operator Dunamu, warned that its mainnet had not launched and that connection details circulating online were false.

DYORSWAP said it paid more than 200 ETH in compensation to affected users and is tracing the bridge deployer, funding sources, suspected test wallets, and the addresses that received the funds. GIWA's Sepolia testnet was launched in September 2025 using Optimism's OP Stack, while a cross-border remittance system using real trade transactions was tested in April.

DYORSWAP used its own funds to compensate users, but the exact impact of this incident on the crypto market is still unknown. The incident highlights the ongoing risks and challenges associated with decentralized finance (DeFi) and the importance of due diligence when dealing with blockchain projects.