Crypto User Loses $50M in Rare Wallet Address Poisoning Attack

Crypto User Loses Nearly $50 Million in USDT Through Rare Address Poisoning Attack as Hacker Launders Funds via Tornado Cash

  • A crypto user mistakenly sent nearly $50 million in USDT to a Hacker via an address poisoning attack.
  • The hacker quickly converted the stolen USDT into DAI and Ethereum, then laundered the funds through Tornado Cash.
  • Address poisoning involves creating a wallet address nearly identical to the victim’s, causing accidental transfers.
  • Experts note that large losses from address poisoning attacks are rare but still occurred in this case.
  • Crypto theft by sophisticated Hackers, including those linked to North Korea, has increased sharply in recent years.

A crypto user lost almost $50 million in USDT stablecoins after sending funds to a hacker’s wallet address created through a poisoning attack. This incident was flagged on a recent Friday and may represent one of the largest on-chain scams recorded. An address poisoning attack happens when attackers generate wallet addresses that closely resemble a user’s to trick them into transferring assets mistakenly.

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In this case, the victim copied and pasted the malicious address, which appeared nearly identical to their own. According to details posted by crypto security firm SlowMist on X, the scammers swiftly exchanged the stolen USDT for DAI tokens, then swapped those for Ethereum within 30 minutes. The Ethereum was subsequently laundered using Tornado Cash, a coin mixing service designed to obscure transaction trails.

Blockchain analyst Specter Analyst commented on X that such massive losses caused by address poisoning should be uncommon, stating, “What leaves me speechless is the type of attack that caused the loss. Address poisoning should be one of the least likely causes of such a massive loss, yet it still happened.”

This attack is part of a broader surge in crypto thefts. Surveillance firm Chainalysis reported a 51% increase in digital assets stolen by hackers linked to North Korea in 2025, with total proceeds from crypto crimes by these state-sponsored groups reaching $6.7 billion since 2016. The largest hack so far this year involved North Korean hackers stealing over $1.5 billion in Ethereum and related tokens from the ByBit exchange in February.

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