Crypto Trader Loses Nearly $50 Million in Address-Poisoning Scam Amid Rising Crypto Fraud Threats
A crypto trader suffered a loss of 49,999,950 USDT after falling victim to an address-poisoning scam, which was triggered by copying a fraudulent wallet address. The malicious address closely resembled the intended recipient's, sharing the first three and last four characters. The stolen USDT was converted to Ethereum (ETH) and distributed across multiple wallets, with some of the funds passing through the mixer service Tornado Cash.
The victim's wallet had been active for approximately two years, with recent withdrawals from Binance occurring shortly before the scam transfer. This incident happens amid a growing security crisis in the crypto sector, where hacks and exploits have totaled nearly $90 billion since inception. November 2025 alone saw thefts amounting to $276 million, pushing total losses in 2025 beyond $9.1 billion—about 10% of all-time crypto losses occurring within the span of one year.
Mitchell Amador, CEO of Immunefi, notes a shift in the threat landscape from vulnerabilities in on-chain code to operational security flaws and human-targeted attacks. Many Web3 projects lack fundamental security measures, and fewer than 10% use AI-driven security tools.
According to FBI data, Americans lost approximately $9.3 billion to crypto investment scams in 2024, while global pig-butchering scams exceeded $9.9 billion. Chainalysis reports indicate that crypto crime activity increased by nearly 40% in 2024.
In response, the SAFE Crypto Act was introduced by Senators Elissa Slotkin and Jerry Moran, proposing the creation of a federal task force to coordinate enforcement against crypto fraud. The act would also require authorized stablecoin issuers to have the ability to freeze or seize assets linked to illegal activities.
Recent enforcement actions include the October seizure targeting the Cambodia-based Prince Holding Group, Tether's freezing of nearly $50 million in USDT connected to pig-butchering rings, and Binance's prevention of nearly $10 billion in fraud losses affecting approximately 7.5 million users between December 2022 and May 2025.
Additionally, a separate attack on a multisignature wallet earlier in December resulted in about $27.3 million stolen, with roughly $12.6 million laundered via Tornado Cash.
This article was published and last updated on December 20, 2025.
