Crypto trader loses $2.5 million USDT after falling for address poisoning scam twice
A crypto trader lost over $2.5 million worth of Tether (USDT) after falling for the same scam twice within hours.
On May 26, blockchain security firm Scam Sniffer reported that the first error occurred when the trader copied a manipulated wallet address from their transaction history. This resulted in a transfer of $843,000 to the scam address.
Just hours later, the trader repeated the same mistake, sending another $1.7 million to the same fraudulent address.
The attack method, known as address poisoning or history poisoning, involves scammers sending tiny transactions from wallet addresses that closely resemble legitimate ones. These fake transfers are designed to appear in the victim’s transaction history.
When the user later attempts to copy a recipient’s address from that history, they will likely select the malicious version and unknowingly send funds to the scammer.
These exploits are increasingly common as attackers target crypto users through subtle, low-effort techniques that rely on user error and interface habits.
Scams and social engineering risks
Hackers have been evolving their methods to target users more directly. Blockchain security firm SlowMist highlighted a growing wave of SMS phishing campaigns.
In these scams, malicious actors typically send messages impersonating crypto exchanges like Coinbase, falsely claiming an issue with a withdrawal or security breach.
The victims are then instructed to call a support number in the message. When they do, they’re connected to a fake agent who directs them to a phishing website. On the website, users would be asked to input their recovery or mnemonic phrase, giving hackers full access to their crypto wallets.
According to blockchain analyst ZachXBT, these social engineering tactics have already cost Coinbase users over $300 million.
Considering this, SlowMist strongly advises crypto users to avoid sharing recovery phrases, ignore unsolicited texts or calls, and verify all communications through official websites or apps.
The post Crypto trader loses $2.5 million USDT after falling for address poisoning scam twice appeared first on CryptoSlate.
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Crypto trader loses $2.5 million USDT after falling for address poisoning scam twice
A crypto trader lost over $2.5 million worth of Tether (USDT) after falling for the same scam twice within hours.
On May 26, blockchain security firm Scam Sniffer reported that the first error occurred when the trader copied a manipulated wallet address from their transaction history. This resulted in a transfer of $843,000 to the scam address.
Just hours later, the trader repeated the same mistake, sending another $1.7 million to the same fraudulent address.
The attack method, known as address poisoning or history poisoning, involves scammers sending tiny transactions from wallet addresses that closely resemble legitimate ones. These fake transfers are designed to appear in the victim’s transaction history.
When the user later attempts to copy a recipient’s address from that history, they will likely select the malicious version and unknowingly send funds to the scammer.
These exploits are increasingly common as attackers target crypto users through subtle, low-effort techniques that rely on user error and interface habits.
Scams and social engineering risks
Hackers have been evolving their methods to target users more directly. Blockchain security firm SlowMist highlighted a growing wave of SMS phishing campaigns.
In these scams, malicious actors typically send messages impersonating crypto exchanges like Coinbase, falsely claiming an issue with a withdrawal or security breach.
The victims are then instructed to call a support number in the message. When they do, they’re connected to a fake agent who directs them to a phishing website. On the website, users would be asked to input their recovery or mnemonic phrase, giving hackers full access to their crypto wallets.
According to blockchain analyst ZachXBT, these social engineering tactics have already cost Coinbase users over $300 million.
Considering this, SlowMist strongly advises crypto users to avoid sharing recovery phrases, ignore unsolicited texts or calls, and verify all communications through official websites or apps.
The post Crypto trader loses $2.5 million USDT after falling for address poisoning scam twice appeared first on CryptoSlate.
Read More
Tether’s 2-Year, $5 Billion Investment Blitz Fuels US Companies: CEO