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Recent Crypto Scam Unveiled
Stolen crypto funds from a $71 million wallet impersonation scam have been on the move after a six-day period.
Wallet Impersonation Scam Details
- An investor was tricked into sending $71 million worth of Wrapped Bitcoin (WBTC) to a bait wallet address on May 3.
- The scammer created a similar-looking wallet address to deceive the victim into transferring 97% of their assets.
- Investors often fail to notice discrepancies in wallet addresses due to hidden middle characters.
Hacker’s Actions
The hacker quickly converted the stolen WBTC into around 23,000 ETH to facilitate easier siphoning through privacy protocols like Tornado Cash.
Observations by PeckShield
Blockchain investigation firm PeckShield noticed the movements of the stolen funds on May 8, as the scammer started splitting and distributing the loot across multiple crypto wallets.
Reducing Traceability
To reduce traceability, the scammer used approximately 400 wallets, leading to over 150 wallets holding the stolen funds.
Crypto Scam Prevention
It is essential for investors to educate themselves on secure cryptocurrency storage practices to avoid falling victim to scams during bullish market conditions.
New Scam Techniques
Another scam targets ERC-2612 tokens, allowing for “gas-less” transfers without transaction approval, requiring users to be deceived into signing a message.
April Crypto Industry Insights
The cryptocurrency industry experienced a downturn in combined losses from hacks and scams in April.
Losses Breakdown
- April saw the lowest combined losses since 2021, with around $25.7 million lost to exploits, hacks, and scams.
- Flash loan attacks accounted for $129,000 in losses, with the largest incident causing $55,000 in damages.
- Exit scams resulted in $4.3 million in losses.
First Quarter Comparison
The first quarter of this year witnessed $336 million lost to Web3 hackers and fraud, showing a 23% decrease compared to the same period in 2023.
Notably, $73,885,000 has been recovered from stolen Web3 capital in seven specific situations.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
