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Bitcoin trader lost $70 million after sending cryptocurrency to the wrong address

Bitcoin trader lost $70 million after sending cryptocurrency to the wrong address
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The discussion is about a popular scam type with "address poisoning" - when scammers create fake accounts with a fake cryptographic address that contains similar first and last characters to a real one.

One of such cases was recently discovered by the blockchain security firm CertiK, noting that the victim lost $69.3 million - around 97% of their assets on Coinbase.

Another company, Peckshield, clarified that the scammers exchanged the stolen bitcoins for 23,000 Ethereum, and then transferred the funds to another address (according to The Daily Hodl, Ethereum is trading at $3116 per coin).

Experts from the crypto platform Trezor recommend conducting small test transactions before sending a large sum and paying closer attention to the numbers in the address being used for the transfer.

According to the FBI, in 2023, cryptocurrency-related fraud caused $3.94 billion in damages to the industry - more than three quarters of the losses from investment fraud committed throughout the year.

Another report notes that fraud involving the so-called "pig butchering" scam cost investors $75 million between 2020-2024. Criminals operating this scheme usually use social media or dating apps to identify potential victims - subsequently building trust with them (sometimes romantically), sending small payments, and enticing them into larger fake crypto investments.

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