Crypto User Falls Victim to $69.3 Million Address Poisoning Scam

Crypto User Falls Victim to $69.3 Million Address Poisoning Scam

In a staggering incident of crypto fraud, scammers managed to abscond with an astonishing 1,155 wrapped Bitcoin (WBTC), worth over $69.3 million, utilizing a deceptive technique known as address poisoning.

According to blockchain security firm CertiK, the unfortunate victim was lured into a malicious transaction on May 3, resulting in the substantial loss of WBTC. The attack began innocuously, with the scammer initiating a 0.05 Ethereum (ETH) transfer before swiftly executing the theft of the WBTC in a subsequent transaction.

The veracity of the incident was confirmed by both on-chain investigator ZachXBT and crypto security provider Cyvers. Meir Dolev, Chief Technology Officer at Cyvers, described the case as “probably the highest value lost due to an address poisoning scam” encountered thus far.

Address poisoning scams operate by presenting victims with a fraudulent wallet address closely resembling the intended destination. Often, the scammer mimics the first and last four to six characters of the legitimate address, exploiting the difficulty users face in discerning subtle differences, particularly when dealing with lengthy alphanumeric sequences exceeding 40 characters.

This significant loss surpasses the combined proceeds from exploits and scams recorded in the previous month, totaling approximately $25.7 million in digital assets. CertiK also noted a decline in DeFi scam levels in April, marking the lowest observed since 2021.

The incident serves as a stark reminder of the ever-present risks within the crypto landscape and underscores the importance of vigilance and robust security measures to safeguard against fraudulent activities. As the crypto ecosystem continues to evolve, users must remain vigilant and exercise caution to mitigate the potential impact of malicious actors and scams.

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