Crypto

Bitcoin trader loses almost $70 million after sending crypto to wrong online account address

Published

2 years ago

May 5, 2024

Bitcoin trader loses almost million after sending crypto to wrong online account address

A cryptocurrency trader reportedly lost tens of millions of dollars in a so-called “address poisoning” scam.

Address poisoning scams are carried out by thieves who make spoof accounts of their victim’s online crypto “address,” which they use to send a small amount of currency to the victim in hopes that they will accidentally send money to the fake address later, according to Transak, a crypto trading platform.

Because blockchains are public, it’s easy for scammers to find people’s crypto addresses and send out spoof transactions to phish for victims.

CertiK, a blockchain security firm, confirmed it detected a transfer of $69.3 million worth of Bitcoin to an address “linked with address poisoning” in a post on X.

The victim’s crypto wallet now shows a total loss of around 97% of its assets on Coinbase. The account is now worth just more than $1.6 million.

Peckshield, another security firm, wrote on X that the scammers traded the stolen Bitcoin for 23,000 Ethereum and then transferred the funds. Ethereum is trading at $3,116 a coin, according to The Daily Hodl.

Trezor, another crypto trading platform, recommends double-checking every address before sending a transaction and never copying an address from transaction history when transferring funds to avoid address scams.

Sending a small test transaction before making a large transfer is also an effective method of verifying the address, the company says.

Cryptocurrency-related scams are on the rise, according to the FBI’s 2023 internet crime report. Crypto-related frauds cost investors $3.94 billion last year, the report says, making up more than three-quarters of the year’s investment scam losses.

One study showed that crypto “pig butchering” scams cost investors $75 million from 2020 to 2024. The fraud starts with criminals sending a wrong-number text that they use as a way to build trust with victims.

Then, they send small payments to them and lure them into making fake crypto investments, only cutting off contact once the victim has sent a large amount of money to the thief.

The scam’s name refers to fattening a pig up before the slaughter.

Most cryptocurrency scams involve scammers trying to get victims in unrelated scams to pay them in Bitcoin so that their crimes cannot be traced, according to the Federal Trade Commission.

The best way to spot a crypto scam is to never trust someone who will only accept payment in crypto or who is promising big profit returns on a fishy investment, the agency says.

“Investment scams are one of the top ways scammers trick you into buying cryptocurrency and sending it on to scammers,” the FTC says. “But scammers are also impersonating businesses, government agencies, and a love interest, among other tactics.”

Related Topics:account address address poisoning advertisement bitcoin trader business insider subscriber crypto fund investor Last year scam scammer story thief victim

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Crypto

SEC Says Cryptocurrency Scam Took $14 Million From Retail Investors | PYMNTS.com

Published

6 hours ago

December 24, 2025

Press Room

SEC Says Cryptocurrency Scam Took Million From Retail Investors | PYMNTS.com

An investment scam allegedly took $14 million from retail investors by connecting with them on social media and convincing them to fund accounts on fake crypto asset trading platforms.

The Securities and Exchange Commission (SEC) outlined the scam in a Monday (Dec. 22) press release announcing that it filed charges against three purported crypto asset trading platforms and four so-called investment clubs.

The regulator filed the charges against the platforms Morocoin Tech, Berge Blockchain Technology, and Cirkor, and the clubs AI Wealth, Lane Wealth, AI Investment Education Foundation, and Zenith Asset Tech Foundation, according to the release.

The SEC’s complaint alleges that the clubs operated on WhatsApp, used social media ads to solicit investors to join the clubs, gained investors’ confidence in group chats, and lured them to open and fund accounts on the platforms.

It alleges that the clubs and platforms then offered “Security Token Offerings” that in fact did not exist and misappropriated at least $14 million from U.S.-based investors.

The regulator’s complaint charges the defendants with violating anti-fraud laws, seeks permanent injunctions and civil penalties against all the defendants, and seeks disgorgement with prejudgment interest against the three platforms.

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“This matter highlights an all-too-common form of investment scam that is being used to target U.S. retail investors with devastating consequences,” Laura D’Allaird, chief of the Cyber and Emerging Technologies Unit at the SEC, said in the release.

The SEC’s Office of Investor Education and Assistance issued an investor alert about this form of fraud on Tuesday.

The FBI’s Internet Crime Complaint Center (IC3) said in April that cryptocurrency fraud led to at least $9.3 billion in losses reported in 2024, a 66% increase over the previous year. These losses stemmed from investment scams, extortion, sextortion and fraudulent activity involving cryptocurrency ATMs and kiosks.

The Federal Trade Commission (FTC) said in March that consumers reported losing more money to investment scams than any other category of fraud in 2024. Consumers reported losing $5.7 billion to investment scams last year, a 24% increase over 2023.

Digital risk protection platform CTM360 said in July that it identified more than 17,000 fake news sites used by scammers to promote investment fraud. These sites are promoted through fake news articles posted through ad platforms or social media, are designed to look like legitimate news outlets, and publish fabricated stories designed to lure readers into scams.

The Justice Department said in June that it filed a civil forfeiture complaint targeting $225.3 million in cryptocurrency that it said was connected to the theft and laundering of funds from victims of cryptocurrency investment fraud schemes.

Crypto

Bitwise Turns ‘Really Bullish’ on Ethereum and Solana as Stablecoins Drive Structural Demand Shift

Published

18 hours ago

December 23, 2025

Press Room

Bitwise Turns ‘Really Bullish’ on Ethereum and Solana as Stablecoins Drive Structural Demand Shift

Bitwise says shifting crypto narratives are really bullish for Ethereum, Solana, and stablecoins, citing structural demand, ETF accumulation exceeding issuance, and regulatory momentum that could drive the market’s next growth phase into 2026 and beyond.

Crypto

Summit County Sheriff’s Office recovers over $100,000 in cryptocurrency investigation

Published

1 day ago

December 23, 2025

Press Room

Summit County Sheriff’s Office recovers over 0,000 in cryptocurrency investigation

SUMMIT COUNTY, Ohio (WOIO) – A City of Green resident reported being the victim of a cryptocurrency investment fraud in early October, resulting in a significant financial loss and opening an investigation.

The Summit County Sheriff’s Office Detective Bureau initiated an investigation utilizing detailed information and financial records provided by the victim.

According to a release from the sheriff’s office, there was assistance from Jackson Township Police Department’s cryptocurrency recovery “Trace Team” and detectives were able to successfully trace and recover $110,000 of stolen funds.

The sheriff’s office reminds the public to remain alert regarding cryptocurrency investment scams and fake investment platforms.

These schemes often begin by encouraging small initial investments that appear to generate returns, creating a false sense of credibility.

The sheriff’s office said once trust is established and larger investments are made, the funds are frequently transferred and become inaccessible.

For public safety, people are encouraged to thoroughly search any investment opportunity and exercise caution when dealing with unsolicited or online investment platforms.

The release from the sheriff’s office says that if anyone believes they may be a victim of cryptocurrency or investment fraud, they should immediately contact their local law enforcement agency and file an online complaint with the FBI’s Internet Crime Complaint Center at www.ic3.gov.

The Summit County Sheriff’s Office said it remains committed to protecting the community and working with partner agencies to investigate and combat financial crimes.