A crypto whale has lost approximately $68 million in wrapped bitcoin due to an address poisoning scam, a form of digital theft, highlighting vulnerabilities in wallet security.
The loss emphasizes the ongoing risk cyber threats pose to cryptocurrency holders, particularly in address-based scams, prompting calls for enhanced wallet verification features to prevent future incidents.
Whale Loses $68 Million in Address Switch Scam
A crypto whale fell victim to an address poisoning scam, resulting in the loss of $68 million. The scam involved creating addresses with similar beginning and ending digits to the victim’s original address.
The attacker tricked the victim by sending a test transaction, followed by a larger transfer to the lookalike address. No institutional involvement in the scam is detected, focusing primarily on individual losses.
Rising Losses: Address Poisoning Cost $1.8 Million in February
Jameson Lopp, Chief Security Officer at Casa, highlighted the necessity for thorough address checks. The FBI warns of similar scams, urging users to double-check transaction details. As Lopp mentions, “The threat actors create addresses that match the first and last digits of addresses from the victim’s transaction history… It’s crucial to thoroughly check addresses before sending funds and for wallets to fully display addresses to mitigate these risks.”
Address poisoning losses reached over $1.8 million in February 2025 alone. Experts emphasize the importance of wallet UI improvements to mitigate risks from similar scams in the future.
48,000 Scams Since 2023 Demand Better Security Protocols
Address poisoning scams date back to 2023, with almost 48,000 incidents recorded. Similar methods have been used to exploit major cryptocurrencies like Bitcoin and Ethereum.
Experts from Kanalcoin suggest that rising incidents highlight the need for enhanced security protocols and comprehensive awareness among users to recognize and report potential threats.
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