An unknown trader has lost $68 million in Wrapped Bitcoin (WBTC) due to a so-called address poisoning scam, on-chain security firm Cyvers revealed in a recent blog post. The trader, known as wallet “0x1E”, lost more than 97% of his total assets.

Scam remains a big problem

Address poisoning, also known as address spoofing, is a method in which scammers take advantage of the haste and inattention of merchants by tricking them into transferring digital assets to fraudulent addresses. According to Cyvers, 1,155 WBTC have been lost as a result.

This scam remains a major problem for trust in the crypto industry. By comparison, in April, on-chain intelligence firm CertiK reported that $25.7 million worth of cryptocurrency was lost to scams and hacks, the lowest amount since 2021.

Figures from ZKasino scam not yet included

Despite an arrest in the ZKasino gambling platform fraud case, which saw $33 million lost in April, CertiK’s report shows a 141% drop in losses from hacks, exploits and scams compared to the previous month. This decline is attributed to a decrease in private key compromises, with only three incidents in April compared to 11 in March.

Interestingly, CertiK’s figures do not yet include the losses from the ZKasino scam. The report mentions the controversy surrounding ZKasino, but has not yet officially classified it as a fraud. The situation surrounding ZKasino worsened on April 22, when the company moved all 10,515 Ethereum deposits by investors to the Lido staking protocol. CertiK has indicated that it will update its figures if it is confirmed that ZKasino is a fraudulent actor.


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