Citi has sounded an alarm over ‘address poisoning’ scams on the Ethereum network following the Fusaka upgrade, with incidents reported as of early 2026, impacting users globally.
The scams highlight vulnerabilities in blockchain address systems, causing losses of millions in cryptocurrencies and raising concerns about transaction security across the Ethereum ecosystem.
Surge in Ethereum Address Poisoning After Fusaka Upgrade
Ethereum is facing a rise in address poisoning scams, exploiting the recent Fusaka upgrade. The scams involve small “dust” transactions poisoning transaction histories.
Researchers such as Andrey Sergeenkov warn against these attacks which involve creating addresses that mimic victims’. Victims often fail to verify these addresses, inadvertently sending funds to the attackers.
Blockchain Inevitably Exposes Users to $740K Losses
The financial impact includes $740K in stablecoin losses; broader address poisoning is part of $3.4B scam losses in 2025.
Experts emphasize the irreversible nature of blockchain transactions, highlighting the need for stringent checks by wallet users and operators to mitigate risks.
CMU Study Logs 270 Million Address Poisoning Attacks
Address poisoning has been noted since 2022, with a CMU study documenting 270 million attacks and $83.8M in losses over two years. Tsuchiya, Carnegie Mellon CyLab Researcher, remarked, “The important issue here is that blockchain transactions are not reversible. Once you make a mistake, you won’t be able to recover anything.”
Channelcoin experts predict continued threats due to shared address formats and suggest monitoring user education on transaction security as a critical measure.
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