A cryptocurrency victim who invested in an address poisoning scam lost $70 million. Scammers created fake accounts to cheat the victim, who sent money into the wrong pocket.
It’s believed that a cryptocurrency trader lost tens of millions of dollars in a scam known as “address poisoning.”
In the poisoning scams, criminals simulate a fake account that replicates their victim’s online “address.” They subsequently send a small quantity of cryptocurrency to the victim in an attempt to deceive them into forwarding their funds to the sham address in the future. Transak, a crypto trading platform, provides this insider information.
Scammers used public blockchains to discover cryptocurrencies’ addresses in order to send victims fictitious transactions with the expectation that they would fall for them. CertiK, a blockchain security firm, discovered a Bitcoin transfer worth $69.3 million that was executed in an attempt to exploit address poisoning.
With assets down to $1.6 million, the victim’s Coinbase cryptocurrency wallet now shows a stunning 97% loss.
Peckshield, a crypto company, disclosed on X that the con artists sold the stolen Bitcoin for 23,000 Ethereum and later moved the money. The Daily Hodl reported that Ethereum is currently trading at $3,116 per coin.
Trezor, a crypto trading platform, advises users to confirm the address they are sending to before submitting any transaction. They recommend avoiding using addresses from the history of transactions because of the risk of becoming a victim of address scams.
According to a study, such frauds that got the name “pig butchering” made investors lose $75 million from 2020 to 2024. The swindle kicks off with crooks texting to the wrong number, thereby building up the faith of victims.
By gradually increasing the initial investment from nominal sums, the swindle artists gain the trust of their victims in the illegitimate cryptocurrency scheme. Typically, they vanish when the victim transfers a substantial sum of money via wire transfer. The scam’s name, “pig butchering,” alludes to the victim’s condition of being fattened prior to the criminal stealing the money.
Cryptocurrency con artists, as reported by the Federal Trade Commission, employ intricate methods to identify their targets, frequently focusing on Bitcoin transactions to create the appearance of fraudulent activities. The agency advises against relying solely on crypto-based payments or individuals promising quick profits through risky investment schemes as the quickest method to identify crypto fraudsters.
According to the FTC, investment schemes are the most prevalent way in which con artists trick victims into purchasing and subsequently relinquishing cryptocurrency. Additionally, con artists employ a variety of methods to carry out their plots, including impersonating businesses and agencies and even posing as a romantic interest.
