Crypto user loses $69.3m to address poisoning scammer

As a seasoned crypto investor with several years of experience under my belt, I can’t help but feel a pang of sadness and anger upon hearing about yet another massive crypto heist. The recent address-poisoning attack that led to the loss of over $69 million in wrapped Bitcoin is a stark reminder of the risks that come with investing in this space.

Crooks managing to swindle an impressive 1,155 wrapped Bitcoins from unsuspecting users through deceptive tactics, exploiting them into engaging in harmful transactions.

As a researcher studying blockchain security, I’ve come across a notable incident where a crypto user suffered a significant loss. According to my findings based on the report from CertiK, an attacker managed to swindle over $69.3 million worth of Wrapped Bitcoin (WBTC) on May 3. The attack was orchestrated through address poisoning.

#Alert from CertiKInsight ⚠️

— CertiK Alert (@CertiKAlert) May 3, 2024

According to reports confirmed by on-chain analyst ZachXBT and cybersecurity company Cyvers, this incident may represent the most significant financial loss caused by an “address poisoning” scheme in the history of cryptocurrencies. Cybers CTO Meir Dolev made this assessment.

In an address impersonation scheme, unsuspecting recipients are tricked into sending their assets to a fraudster by being given a wallet address that closely resembles a legitimate one. The deceitful address often copies the initial and final few characters from a genuine address.

Users can unwittingly become victims of this technique due to the subtle distinctions which aren’t always evident, particularly when it comes to cryptic wallet addresses that may consist of over forty alphanumeric characters.

The incident surpassed the total earnings from deceitful activities and hacks during the previous month, which were approximately $25.7 million worth of digital assets. Additionally, CertiK reported that April experienced the minimal Defi fraud instances since the beginning of 2021.

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2024-05-03 22:41