- $50M USDT lost in address-poisoning scam.
- Victim offers $1M bounty for asset return.
- Laundering involved ETH conversion via Tornado Cash.
A user lost nearly $50 million USDT in an address-poisoning scam reported by SlowMist on December 20, 2025, involving a mistaken transaction to a spoofed address.
The incident highlights ongoing vulnerabilities in blockchain transactions, prompting concerns over security measures. Immediate market response remains muted as the funds are swapped and laundered via Tornado Cash.
Address-Poisoning Scam and Financial Impact
In a significant breach, a cryptocurrency trader lost $50 million in USDT due to an address-poisoning scam. The trader inadvertently transferred funds to an address mimicking their intended recipient, showcasing a prevalent issue in crypto security.
An unknown attacker exploited the address similarity, deploying a dust transaction to deceive the victim. Although the victim responded by offering a $1 million white-hat bounty, no public communication from the attacker has been recorded.
The incident highlights vulnerabilities affecting both individual traders and the broader cryptocurrency market. With $50 million lost, attention has shifted towards improving address verification methods to prevent recurring scams of this nature.
The financial fallout is compounded by laundering activities wherein the stolen USDT was swapped for DAI and converted to ETH before being funneled through Tornado Cash. This laundering route complicates asset recovery efforts for victims.
The scam underscores the necessity for enhanced cybersecurity measures within cryptocurrency platforms and wallets to offer users better protection against such threats.
The event also offers insights into the need for stronger regulatory frameworks and technological advancements that can prevent exploitations. Historical data illustrates a rise in similar fraud cases, urging immediate industry responses.
“Cos, Founder of SlowMist, noted the address similarity but did not provide a quoted statement for citation.”
