Address poisoning continues to threaten large crypto transactions as scammers exploit visual similarities.
A cryptocurrency trader lost nearly $50 million in USDT after sending the funds to the wrong wallet in an address poisoning scam, marking one of the largest on-chain losses in recent memory.
Blockchain security experts from Web3 Antivirus reported that the victim accidentally sent 49,999,950 USDT to a malicious wallet address that closely resembled the intended recipient.
Blockchain records show the user initially sent a small test transaction to the correct destination address. Minutes later, however, the full $50 million transfer was mistakenly sent to a fraudulent address that closely resembled the intended recipient.
The scammer’s wallet differed slightly from the test transaction’s address, suggesting the sender did not verify the full address before sending the $50 million.
The incident unfolded less than an hour after the funds were transferred into the user’s wallet, leaving little time to detect the error.
The USDT had been withdrawn from Binance shortly before the loss occurred. The stolen funds were converted into the unfreezable stablecoin DAI, moved to another wallet, and swapped into wrapped Ethereum.
How the Address Poisoning Scam Works
Address poisoning tricks users into sending crypto to fake wallets. Attackers create addresses that closely resemble legitimate ones, often sharing the same first and last characters.
They then send small transactions to a victim’s wallet so the fake address appears in the transaction history.
When the victim later initiates a transfer, they may copy the address directly from that history, assuming it is the correct recipient. Because most wallets only display shortened versions of addresses, the poisoned address can look legitimate at a glance, making the mistake easy to miss.
When users copy from that history, they can accidentally send funds to the attacker. Because blockchain transactions are irreversible, even a small mistake can lead to massive losses.
Biggest Scams to Date
Some of the largest address poisoning scams have cost victims tens of millions in a single transaction.
In May 2024, one trader lost about $68 million in WBTC after sending funds to a lookalike address, while another case that same month saw a $72.7 million loss in a similar attack. Between 2024 and 2025, thousands of smaller incidents added up to more than $80 million in total losses
Why This Matters
Address poisoning scam targets human error, not technology. Even experienced users can be tricked if they don’t check the full wallet address before sending large amounts.
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