Crypto Investor Loses $71 Million in Address Poisoning Scam: A Cautionary Tale for Bitcoin (BTC) Holders

• In a concerning turn of events, an anonymous crypto trader has lost approximately $71 million worth of assets in an address poisoning scam. This incident has roused much tension in the crypto ecosystem, underlining the need for improved safety measures.
• Address poisoning occurs when malicious actors deceive unsuspecting and innocent traders into transferring their cryptocurrencies to a fraudulent address.
• The scammers’ address had the same six characters at the beginning and the end as the original address.

An anonymous crypto trader loses $71 million in an address poisoning scam, highlighting the need for improved safety measures in the crypto ecosystem.

Trader Loses 1,155 WBTC To Address Poisoning Attack

According to multiple reports, an unknown trader fell victim to an address-poisoning scam on Friday in which they lost 1,155 Wrapped BTC (WBTC) valued at $71 million wiping off 97% of the victim’s wallet balance. For context, address poisoning occurs when malicious actors deceive unsuspecting and innocent traders into transferring their cryptocurrencies to a fraudulent address. Usually, these fake addresses are designed via address mining to resemble the original intended address.

Details of the Scam

Back in August 2023, former Binance CEO Changpeng “CZ” Zhao raised an alert on this type of attack following an attempt to steal $20 million from one of the exchange’s users. CZ explains that these scammers usually commence an attack by sending our dust transaction and inserting the fake address into the target’s transfer history. The ex-Binance boss stated that this address manipulation took advantage of the fact that most wallets’ user interface only shows the beginning and end of addresses hiding the middle part.

Scammers’ Tactics

In relation to the recent address poisoning incident, Meir Dolev, Founder of blockchain security firm Cyvers, has confirmed that the scammers’ address had the same six characters at the beginning and the end as the original address. He also stated that the attackers have now exchanged the stolen WBTC fo... Read the full article for FREE at COINOTAG!