Binance’s CZ Proposes New Measures to Combat Address Poisoning After $50M Loss

TLDR

Binance’s Changpeng Zhao calls for blocking poisoned addresses after a $50M loss in USDT.
Address poisoning scams cost victims $7.7 million in November, with $50M lost recently.
Binance’s security team identified 15 million poisoned addresses to fight the growing threat.
Zhao proposes filtering small transactions and blacklisting scam addresses to improve security.

Binance co-founder Changpeng Zhao has proposed new security measures to fight address poisoning, a growing phishing threat in the crypto world. His call comes after a victim lost $50 million in a recent scam. Zhao suggests wallet providers should block transactions to “poison addresses” and filter out small-value transactions to prevent fraud. This proposal aims to protect users from this increasingly common and damaging scam technique in cryptocurrency.

CZ Proposes Fix to Address Poisoning After Investor Loses $50M

Changpeng Zhao, co-founder of Binance, has proposed new security measures aimed at eliminating address poisoning, a common phishing tactic. The recommendation comes after a victim lost $50 million in USDT (Tether) due to a scam involving address poisoning.

This phishing scheme, which has affected many cryptocurrency users, relies on attackers sending small initial transactions to trick victims into sending funds to fraudulent addresses.

https://twitter.com/MartiniGuyYT/status/2003843308624515229?s=20

Zhao’s proposal urges wallet providers to adopt security features that would block transactions to “poison addresses.” In his blog post, Zhao emphasized the importance of checking receiving addresses and preventing users from sending funds to addresses identified as risky.

Address poisoning is increasingly becoming a significant threat within the crypto space. The scheme tricked users into copying and pasting malicious addresses from their wallet transaction history, leading to massive losses.

Rising Threat of Address Poisoning

Address poisoning occurs when scammers send small amounts of cryptocurrency to a victim’s wallet to make their address appear legitimate. The victim, unaware of the fraudulent intent, then copies this address when conducting a transaction. By this method, attackers deceive users into sending large sums to their illicit wallets.

The attack vector has become a focal point in the broader issue of cryptocurrency-related phishing attacks. According to Scam Sniffer data, phishing scams in November 2024 alone cost victims over $7.7 million. This figure is expected to rise, particularly after the recent incident where a single victim lost $50 million in USDT.

Security companies have identified phishing, including address poisoning, as one of the most damaging threats facing the crypto community. CertiK, a leading security firm, has highlighted this scam type as a key concern for 2024, predicting that attackers will exploit address poisoning to steal large sums from unsuspecting users.

Binance’s Algorithm to Combat Address Poisoning

To address the growing problem, Binance’s security team developed an algorithm to identify poisoned addresses. This system has already flagged around 15 million addresses that are believed to be used for address poisoning scams. The algorithm helps prevent users from interacting with these risky addresses by blocking or warning them before completing a transaction.

Zhao’s new proposal suggests that wallets should not only block transactions to poisoned addresses but also implement filters to remove spam transactions with small values. This measure would prevent users from being misled by seemingly harmless transactions that are part of a broader scam strategy. Zhao’s call for widespread adoption of this system aims to reduce the prevalence of such attacks.

Call for Industry-Wide Action

Zhao’s plea to the crypto industry is a call for greater collaboration in developing solutions to combat phishing and address poisoning. He stresses that all wallet providers should integrate features that automatically check for poisoned addresses before processing transactions. Additionally, blacklists of scam addresses could be shared across platforms to warn users in real time.

“Wallets should not display spam transactions at all,” Zhao wrote. He further advocated for making the detection and blocking of scam addresses a routine process in crypto wallets. The introduction of such security measures could significantly reduce the risk of address poisoning and prevent further financial losses.

Despite the progress made, including the identification of millions of poisoned addresses, phishing scams remain a serious concern. Crypto security experts are urging users to be more vigilant and rely on the latest tools and security updates to protect their assets.

The post Binance’s CZ Proposes New Measures to Combat Address Poisoning After $50M Loss appeared first on CoinCentral.

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