Crypto Trader Loses $50M in USDT to Address Poisoning Scam

Bitcoin.com

Release Time:12/21/2025 12:45:37

A trader lost nearly $50 million in USDT after falling victim to an address poisoning scam on Dec. 20. The attacker spoofed a wallet address matching the first and last four characters of the victim's legitimate address. A small test transaction to the fake address, which looked identical due to truncated display formats, led to a massive transfer of 49,999,950 USDT. Funds were quickly laundered through DAI, converted to ETH, and sent via Tornado Cash. Security experts warn that such attacks are growing as crypto assets rise. These incidents highlight the need for stronger compliance under EU Markets in Crypto-Assets Regulation and ongoing efforts to Countering the Financing of Terrorism.

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