Investor Duped: $2.5 Million Vanishes in Double Scam Incident

A cryptocurrency user has recently lost over $2.5 million due to a basic copy-and-paste error. They attempted to transfer 843,166 USDT to a secure wallet. Instead, they directed part of it to an incorrect address.

Then they replicated the mistake—this time sending $1.7 million to the same fraudster. It serves as an expensive reminder that even minor errors can deplete wealth.

Copy-Paste Error Results in Million-Dollar Deficit

As per on-chain documentation, the individual first transferred $838,611 in USDT to the correct destination (0x4668D1Fe87444a4d750…). Moments later, they selected the inaccurate entry in their transaction ledger.

This blunder resulted in the loss of 843,166 USDT at current valuations. They attempted again. And once more, the currency ended up in the scammer’s account—leading to another $1.7 million disappearing.

Phishing scams continue to be a significant issue. Image: Perkins School For The Blind

Transaction History Poisoning Catches Many Unaware

According to insights from Scam Sniffer, fraudsters are utilizing “transaction history poisoning” to execute these scams. They distribute minuscule “dust” transactions from similar-looking addresses—just enough to muddle a wallet’s transaction history.

🚨 Transaction History Poisoning:

1. Scammer dispatches fake/dust transfer with resembling address
2. Their counterfeit address appears in your transaction history
3. You copy the address from history believing it to be genuine
4. Funds are sent to scammer insteadhttps://t.co/S2lM8J8XWm

— Scam Sniffer | Web3 Anti-Scam (@realScamSniffer) May 26, 2025

When individuals scroll back through previous transactions, they cannot distinguish the authentic address from the fraudulent one. Copy. Paste. Lost. In this instance, the attack address (0x4668EE748c88DA4FEc…) appeared nearly identical to the genuine one. Additionally, it reflected a zero balance, further adding to the confusion.

Phishing Scams Remain Elevated

April’s phishing losses reached $5.29 million. This marks a 17% decrease from March. However, the number of victims surged by 26%, from 5,992 to 7,565 addresses. One single “whale” lost $1.43 million to a phishing attempt. Back in March, the largest loss was $1.82 million.

🚨 ScamSniffer April 2025 Phishing Report

April losses: $5.29M | 7,565 victims
VS March: -17% in losses | +26% in victims

Key insight: Significant increase in victim numbers despite lower overall losses. The largest attack netted $1.43M via phishing, followed closely by $700K from address poisoning… pic.twitter.com/mJbGgGyGrN

— Scam Sniffer | Web3 Anti-Scam (@realScamSniffer) May 3, 2025

Current total crypto market capitalization is $3.4 trillion. Chart: TradingView

April’s second-largest breach resulted in one individual misleadingly sending $700,000 after selecting the wrong address. Another person mistakenly sent $150,000. Additionally, wallet 0xEFc4f1d5 alone suffered a loss exceeding $467,000 in a similar copy-paste trap.

Emerging Threats From EIP-7702 Upgrade

On May 24, the phishing group Inferno Drainer exploited Ethereum’s new EIP-7702 regulations to steal nearly $150,000 in one move. EIP-7702 enables regular accounts to function like smart contracts momentarily.

The scammers directed victims to authorize a set of concealed token transfers through a delegated MetaMask configuration. A single click allowed a hidden “execute” command that emptied the wallets within seconds.

Greed Creates Hazards

Crypto markets are approaching a total valuation of $3.5 trillion. Bitcoin reached a new record high of $111,900 on May 22. Traders are pursuing large returns. This urgency results in hasty actions, and hasty actions lead to errors.

Featured image from Unsplash, chart from TradingView

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