According to blockchain analysis and security reports, a cryptocurrency trader was hit by an address poisoning scam twice within a week and lost 2.5 million US dollars in Tether (USDT). This incident highlights how complex phishing strategies, through repeated social engineering techniques, can even exploit experienced users.
The process of the scam: Fell into the same trap twice
First attack: Forging exchange links
On May 20th, the trader accessed a so-called “advanced trading platform” through a link shared on a cryptocurrency forum. The website imitated the interface of a legal exchange, luring users to deposit USDT into the wallet address provided on the page. Blockchain data shows that within a few hours, 1.8 million US dollars of USDT was transferred to fraudulent addresses. Security experts later discovered that the link was a phishing domain whose URL had been slightly modified (for example, by changing “exchange-coin.com” to “exchangecoin.com”).
Secondary attack: Exploiting psychological weaknesses repeatedly
Just a few days later, on May 25th, traders received an email that seemed to come from the exchange’s “customer service support”, claiming that the first deposit was delayed due to a “system upgrade”. The email provides a new wallet address for “emergency re-deposit” and warns that if the funds are not transferred within 24 hours, the account will be frozen. Traders eager to recover their initial funds sent an additional $700,000 USDT to the fraudulent address.
Address poisoning Scam: A Double Trap of technology and psychology
The core means of the address poisoning scam include:
Cloning legitimate interfaces: Scammers create counterfeit websites that are nearly identical to exchanges, wallets or services to gain users’ trust.
Dynamic address generation: Each victim will receive a unique fraud wallet address, increasing the difficulty of early tracking patterns or marking suspicious activities.
Creating a sense of urgency: Phishing messages often use deadlines or threats (such as account lockup or financial loss) to exert pressure, prompting users to act hastily without verification.
Blockchain tracking: Fund Flow and Difficulty in Recovery
Security agencies traced the stolen USDT and found that the funds were transferred to a series of “coin mixing” services and anonymous wallets to cover up the flow. Within 48 hours after the second deposit, $2.5 million was split into hundreds of small transactions and sent to exchanges in areas with lenient KYC (Authentication) regulation. Experts point out that usually less than 15% of such funds can be recovered.
Security experts warn: Scam sophistication escalates
The trend of secondary victimization: “Scammers often disguise themselves as’ recovery agents’ or customer service teams and target the same user again,” said blockchain investigator Sarah Meier. “They take advantage of the victims’ panic to carry out secondary fraud.”
Preventive suggestions: Always verify the URL through bookmarks or official channels, and avoid clicking on links in forums, private messages or non-solicited emails.
Use wallet address verification tools (such as checksum matching) and enable two-factor authentication (2FA) for all cryptocurrency accounts.
Never rush to deposit money under pressure: Legal platforms rarely require urgent transfers.
Industry response and regulatory calls
The incident occurred at a time when global regulatory authorities were promoting stricter anti-phishing measures. A spokesperson for the Crypto Security Alliance pointed out: “In the first quarter of 2025, address poisoning scams accounted for 32% of cryptocurrency frauds, a significant increase from 19% in the same period last year.” The platform needs to implement real-time address verification to mark suspicious wallets.
Traders who requested anonymity disclosed to investigators that due to the influence of “fear of missing out” (FOMO), they were eager to seize trading opportunities and “ignored basic checks”. At present, the CyberCrime Complaint Center (IC3) of the Federal Bureau of Investigation has intervened in the investigation.
Core revelation: Even experienced traders can fall victim to a combination of technical fraud and psychological manipulation scams. Maintaining the habit of verification at every step of the transaction – especially under time pressure – remains the best defense against address poisoning.
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