Trader Suffers Devastating Loss: $68M Wrapped Bitcoin Vanishes in Address Poisoning Scam
Harvey Hunter
Last updated:
May 3, 2024 19:37 EDT
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1 min read
In a shocking turn of events, an anonymous trader has fallen victim to a devastating address poisoning scam, losing a staggering $68 million worth of Wrapped Bitcoin (WBTC). The incident, reported by the security firm Cyvers, has left the trader’s wallet drained of over 97% of its total assets, leaving them with a mere $13.56 worth of ETH.
Address poisoning, also known as address spoofing, is a crafty technique that exploits a trader’s haste and negligence during transactions. Scammers use this method to trick victims into sending their digital assets to fraudulent addresses under their control. This is not the first time such a scam has occurred, as evidenced by a previous incident in October 2023, where a hacker made off with $1.2 million worth of ARB tokens using the same tactic.
Despite the recent ZKasino fraud case, which saw investors lose at least $33 million in digital assets, the crypto industry has witnessed a decline in overall scams and hacks. According to on-chain intelligence firm CertiK, April 2024 saw a significant drop in monthly losses, with only $25.7 million worth of cryptocurrency stolen, marking the lowest figure since 2021. This downward trend is largely attributed to a decrease in private key compromises, with only three such attacks reported in April, compared to 11 in the previous month.
While the current trend suggests progress in the crypto space, both in terms of security developments and increased user awareness, the industry still faces serious challenges. CertiK reports that during the first quarter of 2024, over $502 million worth of digital assets were stolen across 223 hacks and exploits.
As the crypto ecosystem continues to evolve, it is crucial for traders and investors to remain vigilant and educate themselves on the latest security best practices to protect their digital assets from such devastating scams.