Uniswap user loses $20,000 in fake Uniswap DEX App

An alleged fake Uniswap DEX app is stealing thousands of dollars. Recently a user lost $20,000 as he shared his private key backup phrase.

By · Nov 21, 2020 . 6min read

fake Uniswap DEX App latest news

Scams in the cryptocurrency industry appear in various shapes and forms. It includes imitating authentic applications downloadable from esteemed establishments. Recently, decentralized finance (DeFi) traders are losing thousands of dollars to a fake Uniswap DEX app supposedly available on the play store by scammers. Alex Saunders, the founder of Nuggets News, revealed that one of its users lost approximately $20,000 to the fraudulent application. For the uninformed, Uniswap is a decentralized exchange (DEX) operating on the Ethereum blockchain network that allows users to swap several tokens.

Fake Uniswap DEX app still accessible on Google Play Store

Uniswap DEX, the asserted fake application is still accessible on the Google application store. It recently has a 4.4-star rating. It aims to attract inexperienced investors. The phoney app has gained 100 “fake positive reviews,” which appear adequate for the victim to include his private key backup phrase. Nevertheless, a single search displays that while the UniDEX application has about 50,000 downloads and 4,000 reviews, the fake app has barely 100 downloads, and the above mentioned 100 reviews. Referring to the reviews, new comments notified that the application is a scam. However, some people claim to have squandered some of their cryptocurrency in the application.

As Alex Saunders approved earlier today, the scammers were stealing users’ keyphrases via the fake Uniswap app to obtain their cryptocurrencies on the exchange. The Nuggets News member had trusted the platform owing to the hundreds of favourable reviews supposedly simulated by the scammers to mislead investors into downloading and utilizing the application. This appeared to the loss of $20,000 in cryptocurrency, as he entered his private key backup phrase.

The Uniswap fake app scam is far from being the first fraudulent activity associated with Uniswap. The popular platform was recently a target to a distinct type of impersonators giveaway scams. Earlier, fraudsters designed a fake Uniswap YouTube channel. Moreover, it conducted a live stream video of the protocol’s creator Hayden Adams. In the video, he supposedly offered to double every UNI token sent to his address.

However, it was just a boisterous scam as the video was a tape, and Adams didn’t raise any giveaways.

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