The cryptocurrency world is full of new possibilities and developments that sometimes become the ultimate examples to seek inspiration from.
In one such cautionary tale, a trader lost $68 million worth of funds in a new wallet blunder, taking the realm of cryptocurrency-inspired mistakes to a whole new level.
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Trades Lose $68 Million Worth Of Funds In A Novel Crypto Wallet Fiasco
The cryptocurrency world is riddled with wild stories that teach us a thing or two about how one should conduct their crypto proceedings. In a novel incident, a trader ended up losing $68 million worth of WBTC by falling prey to a new crypto scam.
Per Cyvers Alerts, a trader lost 1155 WBTC worth of funds by simply pasting the wrong wallet address into the transaction. The platform later dubbed the incident a classic example of “address poisoning.” This is a type of scam that permits hackers to extract money from victims by mimicking the first and last six characters of a legitimate wallet.
The scam primarily thrives on an element of confusion created by the mixing of addresses that are hard to differentiate and gain clarity from.
What Are Address Poisoning Scams?
Address poisoning scams are dubbed as scams intended to extract money from crypto users and enthusiasts. Per Transak, these scams are carried out by hackers who first assess a blockchain to find similar wallet addresses. They later send a small amount of crypto to tempt the user, whose wallet appears similar to that of the hackers’.
“The idea is that when the original owner tries to send more crypto, they might accidentally use a similar-looking address. It’s like a scammer trying to catch funds by confusing people.” Transak later shares.
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The mechanisms deployed to address poisoning scams are dependent on the intrinsic humane quality of making errors. Such scams thrive on the idea of a person making a regular mistake while typing their wallet addresses. The error may cause a series of chain reactions to take place. Hence, attention to detail becomes a necessary solution while combating such scams and frauds.