In what appears to be a classic case of deception, the United States Drug Enforcement Administration (DEA) fell victim to a cunning crypto scammer, losing $55,000 in seized Tether (USDT), as reported by Forbes on August 24.
The DEA, responsible for enforcing federal drug laws, had earlier this year seized a significant amount, over $500,000 in USDT, from two Binance accounts. These accounts were under suspicion for their alleged involvement in money laundering activities linked to drug sales, a case that had been under investigation for multiple years.
These confiscated funds were securely stored in Trezor crypto wallets controlled by the DEA. As per the standard procedure for asset forfeiture, the DEA transferred a modest test amount, slightly over $45 in USDT, to the U.S. Marshals Service.
However, this seemingly routine transaction did not go unnoticed. A keen-eyed on-chain detective identified this transaction and immediately executed a nefarious strategy known as “address poisoning.” This involved the creation of a crypto wallet with an address that bore a striking resemblance to the Marshals’ account, sharing the same initial five and concluding four characters.
The scammer then cleverly airdropped a token to the DEA’s wallet. This maneuver ensured that the fake address would appear amidst recent transactions, thereby misleading the actual owner and inducing a transfer to the erroneous address. Unfortunately, the tactic succeeded. A DEA agent, presumably mistaking the spoofed address for the legitimate one, unwittingly transferred $55,000 to the scammer.
By the time the U.S. Marshals Service became aware of this transaction and informed the DEA, and the DEA in turn reached out to Tether for assistance, the damage was done. The seized USDT had already been converted to Ether (ETH) and Bitcoin (BTC) and subsequently funneled into different cryptocurrency wallets.
As the investigation into this incident unfolds, the DEA, in collaboration with the FBI, is on the hunt to uncover the individual or group responsible for this scam. Currently, the trail has led them to two Binance accounts, which were identified as the sources covering the gas fees for the scammer’s wallet transactions. Interestingly, these accounts were registered using two distinct Gmail addresses. It is anticipated that Google may hold crucial information that could assist in identifying the culprits.
As of now, the DEA has not provided any official comment regarding the incident.
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