A crypto trader recently lost $50 million in USDT after falling for an “address poisoning” scam. This is a type of scam where users are tricked into sending crypto to a fake wallet.
The victim wallet, 0xcb80784ef74c98a89b6ab8d96ebe890859600819, first sent a small test transaction of 50 USDT to an address starting with “0xbaf” and ending with “F8b5.” But later, they accidentally sent 49,999,950 USDT to a fake wallet, 0xbaff2f13638c04b10f8119760b2d2ae86b08f8b5, which looked very similar to the test address.
The scam works because many wallets only show the beginning and end of an address. Users copying from transaction history might miss small differences in the middle, leading to huge losses.
In this case, the scammer also moved some funds to another wallet, 0x9da061291e11dad806d68c20730c516c34a17b9b, converted them into stablecoins that can’t be frozen, and later swapped them into wrapped ether through decentralized exchanges.
How Address Poisoning Scams Work
Address poisoning scams happen when scammers send tiny amounts of crypto, called “dust,” from wallets that look almost identical to real ones. These small amounts show up in a user’s transaction history and can trick them into copying the wrong address by mistake.
Traders should always check the full wallet address carefully, avoid copying addresses directly from history, and double-check before sending large amounts.
Last year, similar scams caused victims to lose over $200,000, and in some cases, people accidentally sent tens of millions of dollars to fake addresses. Sometimes, victims even try to negotiate with scammers to get some of their funds back.
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Takeaway for Crypto Users
This scam is a strong reminder of the risks involved when sending stablecoins or other cryptocurrencies on-chain. Even experienced traders can make mistakes if they don’t carefully check the full wallet address.
Address poisoning scams work by creating fake wallets that look very similar to the intended recipient. Many wallets show only the first and last few characters, which makes it easy to copy the wrong address by accident.
To stay safe, always verify the full wallet address, don’t rely on copying addresses from transaction history, and consider using address verification tools when making large transfers.
Double-check every transaction, especially when moving large amounts of crypto. A small oversight can lead to millions in losses. Staying vigilant and cautious is the key to protecting your funds from these sophisticated scams. Remember, careful verification is always better than regret later.
