After six days of quiet, stolen crypto funds linked to a recent $71 million wallet impersonation scam are back in motion.
On May 3, an investor fell victim to a $71 million wallet impersonation scam involving Wrapped Bitcoin (WBTC). The scam involved creating a bait wallet address resembling the victim’s, leading to a significant loss.
Hackers commonly convert stolen crypto to Ether (ETH) for easy siphoning through privacy protocols like Tornado Cash. In this case, the 1,155 WBTC was swiftly converted to around 23,000 ETH, laying dormant for six days.
Blockchain investigation firm PeckShield detected movement of the stolen funds on May 8. The scammer fragmented the loot into various parts, distributing it across multiple crypto wallets to obfuscate its origin.
Approximately 400 crypto wallets were utilized by the scammer to disperse the stolen funds, aiming to reduce traceability. Eventually, the funds ended up in over 150 wallets, yet their trail still leads back to the unidentified scammer.
During bull markets, crypto scammers and hackers tend to be most active. It’s crucial for investors to understand how to securely store cryptocurrencies to mitigate such risks.
A fresh scam method allows malicious actors to drain users’ wallets without requiring transaction approval, exploiting tokens adhering to the ERC-2612 standard. This scheme relies on tricking users into signing a message, often facilitated by fake verification systems like the one seen in the Collab.Land Telegram group.
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