Crypto Investor Loses Millions in Address Poisoning Scam

An anonymous crypto trader has lost a staggering $71 million in an address poisoning scam, highlighting the ongoing threat to crypto investors.

Address Poisoning: A Deceptive Attack

Address poisoning occurs when scammers create fake addresses that closely resemble legitimate addresses. They trick victims into sending their crypto to these fraudulent addresses, stealing their funds.

In this case, the scammer sent a small transaction to the victim’s wallet, inserting the fake address into the victim’s transfer history. Most wallets only display the beginning and end of addresses, making it easy for scammers to exploit this vulnerability.

$71 Million Lost

The victim lost 1,155 Wrapped BTC (WBTC), valued at $71 million, wiping out 97% of their wallet balance. The scammers exchanged the stolen WBTC for 22,956 ETH, which they distributed across 10 different wallets.

Crypto Losses on the Decline

Despite the recent address poisoning attack, overall crypto losses in April 2024 have fallen to $53 million, a significant decrease from previous months. However, this incident serves as a reminder of the importance of vigilance and ongoing security improvements in the blockchain ecosystem.