In the fast-paced world of cryptocurrency, even minor errors can lead to devastating financial consequences. A recent incident highlights the precarious nature of digital transactions, where a user inadvertently lost over $2.5 million due to a simple copy-and-paste error while attempting to transfer their funds to a secure wallet.
This unfortunate situation reinforces the need for vigilance in managing digital assets. The user initially made a successful transfer but then mistakenly sent a large portion of their holdings to an incorrect address, resulting in substantial losses.
The Perils of Digital Transactions
Blockchain records reveal the user first transferred $838,611 in USDT to a legitimate wallet (0x4668D1Fe87444a4d750…). Moments later, inadvertently choosing the wrong entry in their transaction record, they sent 843,166 USDT to a fraudster’s account.
Attempts to correct the mistake only compounded the issue, as another $1.7 million was sent to the scammer’s address.
How History Poisoning Scams Operate
Recent investigations by Scam Sniffer reveal the technique known as “transaction history poisoning.” Scammers execute this by sending negligible amounts—commonly referred to as “dust”—from addresses closely resembling legitimate ones.
How Transaction History Poisoning Works:
1. Scammer sends a minimal “dust” transaction from a fake address
2. This address appears in your transaction history
3. Users mistakenly copy this address, believing it’s legitimate
4. Funds are sent to the scammer instead!— Scam Sniffer | Web3 Anti-Scam (@realScamSniffer) May 26, 2025
These misleading entries can make it nearly impossible to differentiate real from false addresses. In this case, the scam address (0x4668EE748c88DA4FEc…) was almost indistinguishable, with a zero balance heightening the confusion.
Phishing Attacks Continue to Rise
April statistics reflected alarming trends, with phishing losses tallied at $5.29 million, a 17% decrease from March; however, the number of victims surged by 26%, climbing from 5,992 to 7,565. One individual lost $1.43 million due to a phishing scheme, while prior records showed a peak loss of $1.82 million the previous month.
Total losses for April: $5.29M | Number of victims: 7,565
In comparison to March: -17% in losses | +26% in victimsKey takeaway: A significant spike in victim numbers despite a drop in overall losses. The largest loss this month was $1.43M from phishing, followed closely by $700K from address poisoning… pic.twitter.com/mJbGgGyGrN
— Scam Sniffer | Web3 Anti-Scam (@realScamSniffer) May 3, 2025
Several other user losses were notable, including individuals who accidentally sent $700,000 and $150,000. One wallet alone suffered a loss exceeding $467,000 due to similar copy-paste errors.
Emerging Threats Post EIP-7702 Upgrade
On May 24, the notorious phishing group Inferno Drainer leveraged Ethereum’s EIP-7702 upgrade to swipe nearly $150,000 in one transaction. This EIP permits standard accounts to briefly function like smart contracts.
Using this vulnerability, the scammers persuaded users to approve a series of concealed token transfers via a delegated MetaMask setup. This single click unleashed an instant “execute” command, allowing for rapid wallet drainage.
Understanding the Risk of Greed
The total market valuation of cryptocurrencies hovers around a staggering $3.5 trillion. On May 22, Bitcoin reached an unprecedented all-time high of $111,900. With traders eager for substantial returns, impulsive actions become commonplace, increasing the likelihood of mistakes.
Featured image courtesy of Unsplash, chart sourced from TradingView
