- A trader lost $68 million worth of Wrapped Bitcoin (WBTC) in an address-poisoning scam, as reported by Cyvers.
- Address poisoning exploits traders’ mistakes by tricking them into sending assets to fraudulent addresses.
- Despite a high-profile scam, April saw a historical low in crypto losses to scams, totaling $25.7 million.
An unknown trader has reportedly lost $68 million worth of Wrapped Bitcoin (WBTC) in a severe address-poisoning scam, according to on-chain security firm Cyvers. The loss, highlighted in a recent X post by the firm, marks one of the most significant recent thefts in the cryptocurrency sector.
Details of the Loss
The victim, identified by their wallet address “0x1E,” has seen over 97% of their total holdings wiped out, equating to approximately $67.8 million. Address poisoning, the method used in this scam, involves creating addresses that closely resemble those of legitimate users. Unwary traders, often rushing, mistakenly send substantial sums to these fraudulent addresses.
April’s Crypto Scam Overview
Despite the shocking size of this particular theft, April witnessed a significant decrease in overall losses from crypto-related scams and hacks. According to CertiK, only $25.7 million was lost to such incidents throughout the month, marking the lowest figure recorded since 2021. This decrease is attributed primarily to fewer private key compromises, with only three incidents reported compared to eleven in March.
ZKasino Incident and Ongoing Investigations
Additionally, the crypto community has been closely watching the unfolding situation around the ZKasino gambling platform. In April, at least $33 million was reportedly lost in a scam involving ZKasino, leading to the arrest of a suspect by Dutch authorities. However, CertiK’s report does not currently classify ZKasino as a scam but notes it is in the middle of a controversy. The firm has stated it will update its figures if ZKasino is confirmed to be a malicious actor, after the platform transferred all investor-deposited Ether to the Lido staking protocol under suspicious circumstances.
Looking Ahead
As the cryptocurrency community continues to grapple with security issues, the incident serves as a stark reminder of the need for vigilance and thorough verification in all transactions. Industry experts and security firms remain on high alert, seeking to bolster defenses against increasingly sophisticated methods of theft and fraud in the digital asset space.
