Onchain data reveals how a subtle wallet spoof led to one of the year’s largest single-transaction losses
A single copy and paste mistake has resulted in the loss of nearly $50 million in USDt, underscoring how even experienced crypto users remain vulnerable to increasingly subtle scams. The incident highlights the growing threat of address poisoning attacks, which exploit user habits rather than technical flaws in blockchain systems.
How the Address Poisoning Scam Worked
The victim unintentionally transferred 49,999,950 USDt after copying a malicious wallet address from their transaction history. Address poisoning occurs when attackers send small amounts of crypto from a lookalike address designed to closely resemble a legitimate one. These transactions appear in wallet histories, where users may later copy the wrong address without noticing minor differences.
Onchain records show the victim first sent a small test transaction to the correct destination. Shortly afterward, the full amount was transferred but this time to the poisoned address, not the intended recipient.
Security analysts noted that the scam address matched the legitimate wallet in the first few and last several characters, a common shortcut users rely on when verifying addresses. The wallet had been active for about two years and was frequently used for large USDt transfers, indicating the victim was not a novice.
Funds were reportedly withdrawn from a centralized exchange shortly before the transfer, suggesting active wallet management at the time of the error.
Following the theft, the attacker converted the stolen USDt into Ether, distributed it across multiple wallets, and routed part of the funds through a privacy mixer. The incident comes amid a broader surge in crypto crime, with billions of dollars lost to hacks and scams this year.
This case illustrates how human error remains one of the weakest links in crypto security. Verifying full wallet addresses rather than relying on partial matches is increasingly critical as scammers refine low-effort but highly effective attack methods.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.