Crypto Investor Loses $4.46 Million in USDT Approval Mining Scam
A crypto investor recently fell victim to a USDT Approval mining scam, resulting in the loss of $4.46 million worth of assets. The scam occurred immediately after the investor withdrew their USDT from the Kraken exchange. Scam Sniffer, a blockchain security platform, reported this incident.
Scam Sniffer analyzed data from Etherscan and discovered that the scammers targeted victims by using a fake wallet address that resembled Coinone, a cryptocurrency mining exchange.
Another blockchain security firm, Peckshield, provided further details on the scam. According to their report, the scammers exchanged all the stolen USDT for DAI stablecoin using the Tokenlon decentralized exchange. They then split the loot and distributed over 1 million DAI to four separate wallet addresses.
Over $337 Million Lost to USDT Approval Mining Scams – Dune Analytics
Dune Analytics published a report revealing that USDT approval mining scams have become a widespread issue in the crypto industry. These scams have introduced more people to cryptocurrencies than legitimate crypto businesses.
In typical fashion, scammers initiate contact with their targets through email or other online platforms. They gradually build trust and present an extravagant lifestyle funded by crypto assets. After months of establishing a relationship, they convince their victims to invest in fraudulent cryptocurrency schemes.
The report states that these scams have resulted in losses of over $337.08 million, affecting 21,953 victims. On average, each victim has lost around $21,953. Since September 23, 2021, there have been 49,427 recorded scam transactions with an average loss of $6,820 per transaction.
Crypto Scams Remain a Growing Threat
Crypto scams continue to pose a significant risk to investors and enthusiasts. Billionaire Mark Cuban recently lost approximately $870,000 to a phishing scam. In August, Binance CEO Changpeng “CZ” Zhao warned about the increasing sophistication of scammers in the crypto community.
Zhao specifically addressed zero-transfer phishing attacks and advised users on prevention and asset recovery methods.
Hot Take: Crypto Scams Demand Heightened Vigilance
The prevalence of crypto scams highlights the need for increased vigilance among investors. Scammers employ various tactics to deceive unsuspecting victims, resulting in substantial financial losses. It is crucial to remain cautious when engaging with unknown individuals or platforms in the crypto space.
Protecting your assets requires staying informed about the latest scam techniques and adopting best practices for online security. By being proactive and skeptical, you can minimize the risk of falling victim to fraudulent schemes and help create a safer crypto ecosystem.
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