$68 Million Bitcoin Scam Victim Nearly Fully Reimbursed by Attacker
Summary:
An address poisoning attacker who swindled a user out of 1,155 Wrapped Bitcoin (wBTC), equivalent to $68 million, has returned nearly all stolen funds. The perpetrator, who swapped the Bitcoin for Ether (ETH), refunded around $65.7 million, over 96% of the initial USD value. This occurred after a series of communication exchanges between the victim and the attacker and the intervention of blockchain security platform, Match Systems. The case highlights the risks of address poisoning to crypto users and the need for caution when conducting transactions.
An individual who duped a user through address poisoning, consequently stealing 1,155 Wrapped Bitcoin (wBTC) valued at $68 million, has returned nearly all of it as evidenced by blockchain data. The malicious party had converted the stolen funds into Ether (ETH), during which period the value of ETH dropped. Nevertheless, the perpetrator refunded approximately 22,960.07 ETH, equivalent to $65.7 million, meaning they returned over 96% of the stolen funds based on US dollar value. The victim's wallet currently holds over 22,000 ETH. Source: Etherscan.
On May 10, at 8:47 UTC, a number of wallets started transferring ETH to the affected account, with the initial transfer standing at 29.999 ETH ($87,199, according to ETH's value at that moment). Within the next 24 hours, the victim’s address received ETH through over 225 transactions from numerous accounts. The transaction values varied between 29 and 67 ETH. Source: Etherscan.
After a barrage of transactions, the wallet collected over 29,000 ETH. This took place after a series of conversations between the perpetrator and the victim, with the latter initially conceding 10% of the funds as a bounty. But with the perpetrator having returned more than 90% of the stolen funds, this agreement appears to have dissolved.
In a report accredited to blockchain security entity Match Systems, and reviewed by Cointelegraph, the platform reported having unearthed details that "reinforced" the victim's bargaining position, indicating that security experts were closing in on identifying the perpetrator. As stated in the report, following a comprehensive analysis, Match Systems identified several strategies to bolster the position of the victim in subsequent dealings with the perpetrator. Consequently, "the attacker returned the entirety of the stolen 22,960 ETH to the victim," according to the report. It was also mentioned in the report that at present, the victim harbours no grievances towards the attacker.
Cointelegraph's attempt to validate the report's authenticity with Match Systems was unsuccessful due to non-receipt of a response.
Address poisoning can wreak significant havoc on crypto users' assets. Experts advise meticulous verification of the recipient's address before dispatching each transaction.
Relatedly, address poisoning scams have duped even the DEA, which recently lost $55K in such a scam.
Published At
5/11/2024 12:10:00 AM
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