Cryptocurrency Users Lose $130K to Fake Wallet Scam After $880K Heist

Generated by AI AgentCoin World
Tuesday, Aug 12, 2025 2:26 am ET1min read
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Aime RobotAime Summary

- Crypto users lost $130K in Ether after sending funds to nearly identical fake wallets, part of a $880K+ scam wave.

- Scammers inject thousands of deceptive addresses into transaction history, mimicking real ones with altered middle characters.

- A $68M WBTC theft involved 80,000+ fake wallets, with stolen funds laundered through multiple exchanges to obscure trails.

- Wallet providers warn against relying on auto-filled addresses, urging users to verify each character or use trusted address books.

A wave of “poisoning address” scams has struck cryptocurrency users with staggering losses, including a recent $130,000 theft in Ether after a victim sent funds to a nearly identical fake wallet. This follows a larger $880,000 heist in which four separate $220,000 transfers were sent to dummy wallets. The scam relies on deceptive addresses that mirror genuine ones, differing only in a few middle characters and designed to be nearly indistinguishable when displayed by wallets or blockchain explorers [1].

The method involves injecting thousands of these fake addresses into a user’s transaction history. Scammers create them so that the first and last characters match legitimate addresses, increasing the likelihood that users will mistake them when copying or pasting addresses. The scam succeeded in part because users often rely on convenience—auto-filled or previously used addresses—without verifying each character. In one case, victims believed their transactions were delayed, prompting repeated transfers that ultimately benefited the attackers [1].

This type of scam also played a role in a separate, more massive theft where a single user lost $68 million worth of Wrapped

Bitcoin
(WBTC). Scammers set up over 80,000 fake wallets to mimic legitimate addresses and lure victims. After stealing the assets, they moved the funds through multiple intermediary wallets and exchanges to obscure the trail [1].

Wallet providers such as Metamask have warned users to avoid relying on transaction history for address copying. Instead, they recommend maintaining a trusted address book or whitelist to ensure that only verified contacts receive transfers. These scams highlight the risks of complacency in a fast-moving digital environment where even minor oversights can lead to significant financial loss [1].

Source: [1] Poisoning Address Scam Explodes: $130K Lost After $880K

Ethereum
Heist (https://www.livebitcoinnews.com/poisoning-address-scam-explodes-130k-lost-after-880k-ethereum-heist/)