Trader robbed of $68m in BTC by address poisoning

An anonymous trader lost $68 million in Wrapped Bitcoins (WBTC) in a single transaction following an address poisoning scam, an attack aimed at exploiting traders’ inattention when trading.

Trader loses 97% of bitcoin assets in address poisoning scam

According to information from cybersecurity firm Cyversthe portfolio of the anonymous trader, identified under the pseudonym ” 0x1E” has been emptied of more than 97% of its total assets representing a value of over $67.8 million in wrapped bitcoins (WBTC).

Address poisoning, also known as address spoofing, an increasingly common fraud technique in the crypto world. This type of scam aims to induce victims to transfer their cryptos to fraudulent addresses under the control of the crooks. This technique takes advantage of traders’ haste and lack of vigilance, particularly during large-scale transactions.

Following this hack, the wallet only contained the equivalent of $13.56 in Ether (ETH). Unfortunately, this case is far from isolated. In October 2023, a cybercriminal had already stolen $1.2 million worth of ARB tokens using the same method.

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Crypto scams down despite recent incident

Although the cryptocurrency sector continues to be marred by high-profile scams, such as the ZKasino in April, when investors lost $33 million, a positive trend is emerging. According to CertiK, in April 2024, only $25.7 million was lost to scams and piracy, the lowest monthly level since 2021.

This 141% decrease compared to March is mainly due to a drop in attacks via private key compromise. Only 3 attacks of this type were recorded in April compared with 11 in March. Security initiatives and awareness-raising among crypto industry players therefore seem to be producing encouraging results.

Nevertheless, the $68 million loss suffered by this anonymous trader serves as a reminder that caution remains more important than ever. Despite the progress achieved, the crypto sector remains a prime hunting ground for hackers. So, not only must every user be extra vigilant in securing their cryptos against these ever-evolving scams, but they must also equip themselves with a suitable wallet. With this in mind, we strongly recommend acquiring one of the biometric wallets offered by our partner DCent.