May 8, 2024
Latest Cryptocurrency News

$68 Million Address-Poisoning Scam Shocks Crypto Community

An unidentified trader has fallen victim to a staggering $68 million loss in Wrapped Bitcoin (WBTC) in what appears to be a sophisticated address-poisoning scam.

The alarming incident was initially flagged by on-chain security firm Cyvers in a recent X post, raising concerns within the cryptocurrency community.

Address Poisoning: A Cunning Trap for Crypto Traders

The victim, identified by the wallet address “0x1E,” has reportedly lost over 97% of its assets, totaling a whopping $67.8 million, as per CoinStats data.

Wallet “0x1E.” Source: CoinStats

Address poisoning, also known as address spoofing, exploits traders’ inadvertence during transactions. It involves redirecting digital assets to fraudulent addresses owned by scammers, leaving victims with substantial financial losses.

Cryptocurrency Scams Persist Despite Decrease in Overall Losses

This incident comes on the heels of a series of crypto scams, including the recent Zkasino fraud case where investors lost a minimum of $33 million.

Despite these setbacks, April witnessed a decrease in cryptocurrency losses due to hacks and scams, marking the lowest figure since 2021.

According to on-chain intelligence firm CertiK, losses were down 141% from the previous month, primarily attributed to a reduction in private key compromises.

While the Zkasino incident contributed significantly to the overall losses, CertiK has not yet labeled it as a scam. However, investor concerns heightened when Zkasino transferred all deposited Ether (ETH) into the Lido staking protocol, intensifying suspicions of malicious intent. CertiK has indicated a willingness to revise its assessment if Zkasino’s involvement in fraudulent activities is confirmed.

Despite efforts to enhance security measures, cryptocurrency investors remain vulnerable to evolving scams and hacks. The incident emphasizes the importance of due diligence and caution in the digital asset space.

Image by storyset on Freepik

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