Crypto User Loses $700,000 To Address Poisoning Scam—Here’s What Happened
An Ethereum user lost nearly $700,000 in USDT due to an address poisoning scam. Malicious actors create similar-looking addresses to deceive victims into sending funds to them. The scammer sent a transaction of 0 USDT from an address resembling a legitimate Binance wallet, leading the victim to mistakenly copy it from their transaction history. Scammers utilize automated software to generate thousands of similar wallet addresses, making it a low-effort, high-reward tactic. After receiving the funds, the scammer converted USDT to DAI, which cannot be frozen by Tether. Address poisoning scams are increasing, with significant losses reported, including a $70 million incident last year. To avoid such scams, users should verify full wallet addresses multiple times and avoid copying addresses from transaction history or unverified messages.
