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Poof! Trader Loses $68 Million in Funds in New Portfolio Mistake, Poof! Trader Loses $68 Million in Funds in New Portfolio Mistake

Poof!  Trader Loses  Million in Funds in New Portfolio Mistake, Poof!  Trader Loses  Million in Funds in New Portfolio Mistake

The world of cryptocurrencies is full of new possibilities and developments that sometimes become ultimate examples to draw inspiration from.

In one such cautionary tale, a trader lost $68 million in funds in a new portfolio mistake, taking the realm of cryptocurrency-inspired mistakes to a whole new level.

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Transactions Lose $68 Million in Funds in New Crypto Wallet Fiasco

Source: Newsweek

The world of cryptocurrencies is full of crazy stories that teach us a thing or two about how one should conduct their cryptocurrency procedures. In a new incident, a trader ended up losing $68 million worth of WBTC by falling prey to a new crypto scam.

According to Cyvers Alerts, a trader lost 1,155 WBTC in funds by simply pasting the wrong wallet address into the transaction. The platform later called the incident a classic example of “address poisoning.” This is a type of scam that allows hackers to extract money from victims by imitating the first and last six characters of a legitimate wallet.

The scam mainly feeds on an element of confusion created by the mixture of addresses that are difficult to differentiate and clarify.

What are address poisoning scams?

Address poisoning scams are referred to as scams designed to extract money from crypto users and enthusiasts. According to Transak, these scams are carried out by hackers who first evaluate a blockchain to find similar wallet addresses. They then send a small amount of crypto to tempt the user, whose wallet appears similar to the hackers’.

“The idea is that when the original owner tries to send more crypto, they may accidentally use a similar address. It’s like a scammer trying to get funds by confusing people. Transak shares later.

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The mechanisms deployed to combat poisoning scams depend on the intrinsic human quality of the errors made. Such scams prey on the idea that a person regularly makes a mistake when entering their wallet address. The error can cause a series of chain reactions. Therefore, attention to details becomes a necessary solution in the fight against such scams and frauds.