A cryptocurrency investor has fallen victim to a $4.46 million asset loss in connection with a USDT Approval mining scam. As reported by the blockchain security platform Scam Sniffer, this fraudulent scheme unfolded mere minutes after the investor executed a 4.46 million USDT withdrawal from the Kraken exchange.
Utilizing information sourced from Etherscan, Scam Sniffer further identified that the scammers employed a counterfeit wallet address, cunningly manipulated to resemble an official Coinone cryptocurrency mining exchange address, in their targeting of unsuspecting victims.
Simultaneously, Peckshield, a blockchain security company, has delved deeper into the details of this recent cryptocurrency scam. According to Peckshield’s findings, the perpetrators swiftly exchanged all USDT tokens for the DAI stablecoin, utilizing the Tokenlon decentralized exchange.
Following this maneuver, the malefactors divided their ill-gotten gains, funneling slightly over 1 million DAI into four distinct wallet addresses.
USDT Approval Mining Scams Lead to Over $337 Million in Losses, Reports Dune Analytics
As per Dune Analytics’ report, USDT approval mining scams are emerging as a significant concern within the cryptocurrency landscape, rapidly onboarding more individuals into the crypto sphere than reputable crypto enterprises.
Much like many scams, USDT approval mining scams typically commence with the perpetrators sending what appears to be a benign message to their targets through channels such as email or various online platforms.
Subsequent to a response to their initial message, these fraudulent actors then embark on cultivating a rapport with their targeted victims, gradually enticing them with the allure of a lavish lifestyle funded by cryptocurrency assets. At times, they invest months in meticulously building trust before finally persuading their victims to participate in a deceitful cryptocurrency scheme.
According to further details from the report, scammers have managed to abscond with a staggering sum of $337.08 million, victimizing 21,953 individuals through USDT approval mining scams. On average, each victim has suffered losses amounting to $21,953.
The report also reveals that the first documented transaction associated with this type of scam occurred on September 23, 2021. Since that time, Dune Analytics has identified 49,427 USDT approval mining scam transactions, with an average illicit gain of $6,820 per transaction.
Crypto Scams Persist as an Escalating Threat
In recent developments, cryptocurrency scams continue to pose a significant threat to both investors and enthusiasts at large. Just recently, billionaire entrepreneur Mark Cuban experienced a loss of approximately $870,000 in assets after inadvertently interacting with a phishing link.
In a related incident, authorities in Thailand apprehended those behind a $27 million crypto scam, which affected over 3,200 victims.
Back in August, Changpeng “CZ” Zhao, the CEO of Binance, took to social media to raise awareness about the growing sophistication of scammers within the crypto community. He specifically addressed a type of scam known as zero-transfer phishing attacks and offered valuable advice to users on how to prevent such scams and recover their assets.
