Crypto Trader Defrauded of $50 Million in Address Scam

Incident Overview: An anonymous trader lost $50 million USDT due to an address poisoning attack, where a fraudulent address was created to deceive the trader into transferring funds.

Attack Methodology: The scam involved mimicking the legitimate address's characters through a dusting transaction, leading to the conversion of stolen funds into ETH and laundering via MetaMask and Tornado Cash.

Historical Context: Address poisoning attacks have previously resulted in losses exceeding $83 million, highlighting the ongoing risk for high-balance wallets that are frequently targeted by scammers.

Security Recommendations: Experts advocate for enhanced security measures such as address whitelisting, multisig wallets, and thorough address verification to mitigate the risks associated with such attacks.