Welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at the recent news of an address poisoning scam on a user who lost $68 million in wrapped Bitcoin.
Bitcoin Scam
Recently a cryptocurrency user lost $68 million worth of wrapped bitcoin (WBTC) in a single transaction in an address-poisoning scam. This happened on the 3rd of May 2024, and was noted by security firm Cyvers.
The address poisoning scam, also known as address spoofing, is a technique which involves tricking the victim into sending a legitimate transaction to the wrong wallet address. This is done by mimicking the first and last six characters of the true wallet address while also relying on the sender to miss the discrepancy in the intervening characters. Wallet addresses are often as long as 42 characters.
The victim saw 97% of their total assets drained following the exploit of a mimicked a 0.05 ether transaction prior to receiving 1,155 WBTC from the victim. Blockchain sleuth ZachXBT also noted the $68 million loss due to an address poisoning scam. The user was left with just $13.56 worth of ETH left in their wallet, according to CoinStats.
Back in October 2023 a hacker managed to make off with $1.2 million worth ARB tokens through the same method of address poisoning. While scams do continue to dominate the mainstream crypto industry, the total loses from exploits and scams fell 141% back in April compared to the previous month. This was attributed to a lack of private key compromises, but there were 11 attacks against protocols via private key compromises in March 2024 compared to only three in April 2024.
According to CertiK, over $502 million worth of digital assets were stolen across 223 hacks and exploits during the first quarter of 2024.
Have a great day.
CryptoGod-1.
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