Crypto Scam Alert: $850K Lost to Transaction History Poisoning

These situations cost one victim $763,662 and another $104,685. All because they copied the wrong wallet address.

Let’s break down how it happened and how you can avoid falling into the same crypto trap.

Case 1: The Tricky Look-Alike Address

A victim lost a staggering $763,662 after sending funds to a scammer’s wallet instead of their intended recipient. The scammer had inserted a fake address into the victim’s transaction history that looked nearly identical to the real one. The first four and last six characters matched, making it easy to mistake for the correct address.

Thinking they were playing it safe by double-checking the address, the victim copied and pasted it—only to realize too late that their funds had vanished into the scammer’s hands.

Case 2: A Contaminated CEX Deposit Address

In another case, a victim lost $104,685 by copying the wrong deposit address when sending funds to a centralized exchange (CEX). The scammer had manipulated their transaction history, adding a fake deposit address that closely resembled the correct one.

Assuming it was safe, the victim copied and used the address without realizing it was a trap. By the time they discovered the mistake, the funds were long gone.

Scammers take advantage of the way blockchain explorers and wallets display transaction history. They send small, meaningless transactions to target wallets using addresses that mimic frequently used ones. So, when victims go back to retrieve an address from their history, they unknowingly copy the fraudulent one. This sends their crypto straight to the scammer.

How to Stay Safe
  • Always verify addresses manually. Instead of relying on partial matches, compare the entire address before sending funds. A quick double-check could save you thousands.
  • Use trusted address books. Many wallets allow you to save frequently used addresses. This prevents you from accidentally copying a fake one.
  • Be cautious with transaction history. If an address pops up unexpectedly in your history, don’t assume it’s safe. Always retrieve deposit addresses directly from the official source.
  • Test with small amounts. If you’re sending a large sum, try a small test transaction first. If it doesn’t arrive, you’ll only lose a small amount instead of everything.

Disclaimer

The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.

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