User Loses $69.3M in Crypto Address Poisoning Scam
In a shocking development in the cryptocurrency world, scammers successfully stole 1,155 wrapped Bitcoin, valued at over $69.3 million. The theft occurred on May 3, involving a sophisticated address-poisoning technique that misled a crypto user into authorizing malicious transactions. Blockchain security experts at CertiK first reported this incident, highlighting its scale and the method used by the attackers.
Our system has detected a transfer of 1,155 WBTC (~$69.3m) to an address linked to address poisoning
EOA 0xd9A1 mimicked a transfer of 0.05 ETH which led the victim to send the funds to the wrong address
Stolen funds are here https://t.co/m2xpJW0QIZ pic.twitter.com/PWFhEsEN2G
— CertiK Alert (@CertiKAlert) May 3, 2024
The scammers initiated their scheme by mirroring a minor Ethereum transaction of 0.05 ETH. Following this, they executed the major theft of wrapped Bitcoin in the subsequent transaction. This incident marks one of the largest losses in a single address poisoning attack, as confirmed by on-chain investigator ZachXBT and Cyvers, another crypto security firm. Meir Dolev, the CTO of Cyvers, emphasized the significant value lost in this scam, labeling it as unprecedented in the realm of address poisoning.
The Mechanics of Address Poisoning
Address poisoning scams operate by deceiving users with a wallet address that closely resembles their own. These fraudulent addresses often replicate several characters at the beginning and end, making them extremely difficult to differentiate from the genuine ones. Given that wallet addresses can often extend beyond 40 characters, the similarity can be easy to miss, leading to costly mistakes.
This recent theft has surpassed the total losses from various crypto exploits and scams recorded last month, which accumulated to about $25.7 million. Despite the high-profile nature of this scam, CertiK observed that April experienced the lowest levels of defi-related scams since 2021, indicating a temporary dip in fraudulent activities prior to this significant event.
Understanding the methods used by scammers and staying vigilant about transaction details can help prevent such losses. Users are advised to double-check addresses and stay updated on the latest security practices within the crypto community.
The post User Loses $69.3M in Crypto Address Poisoning Scam appeared first on Crypto Academy.
Filed under: Bitcoin - @ May 4, 2024 5:23 pm