The post CZ Urges to Protect Users from Scam Wallets after $50M USDT Theft appeared on BitcoinEthereumNews.com.

Key Notes CZ proposes wallet-level blocks and UI filters to stop “poison” addresses and copy-paste traps. Case in point: an investor mis-sent ~$50M USDT to a look-alike address; funds were quickly split and obfuscated. Binance security tracks millions of poisoned addresses; phishing-style losses remain elevated across the sector. Binance co-founder Changpeng “CZ” Zhao urged crypto wallets to detect and block address-poisoning scams automatically. He proposed industry-wide blacklists and UI filtering after an investor mistakenly sent $50 million in USDT to a spoofed address last week. In a post titled “Let’s Eradicate the Poison Scams,” Zhao said wallets should query known “poison addresses,” warn or block users, and hide zero-value spam that clutters histories. He added that Binance Wallet already performs such checks.  What’s Behind the Address Poisoning Scams A “poison wallet,” or address poisoning scam, is a crypto trick where attackers send tiny amounts of crypto (dust) from a fake address that looks like a frequent contact’s address to your wallet, hoping you’ll copy the fake one later and send funds to them instead of the real person. It works by exploiting user habits, making you accidentally send crypto to the scammer’s address, which is just one character different from the real one, making it hard to spot.  The renewed push follows a high-profile loss on Dec. 19, when a whale copied a look-alike address from their transaction history and transferred 49,999,950 USDT to the attacker. On-chain records show funds leaving the victim’s wallet and arriving at a phishing-tagged address.  Security write-ups indicate the thief quickly converted the USDT and split the proceeds across multiple wallets, with part of the haul routed through Tornado Cash to obfuscate the trail.  How to lose $50M in under an hour. This is one of the largest on-chain scam losses we’ve seen recently. A single victim…

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Filed under: News - @ December 25, 2025 1:21 pm