Crypto Scam Update: Stolen $71M WBTC Loot Distributed Among Multiple Wallets
Stolen crypto funds tied to a recent $71 million wallet impersonation scam have started moving after six days.
On May 3, an investor fell victim to a wallet poisoning scam, sending $71 million worth of Wrapped Bitcoin (WBTC) to a bait wallet address.
The scammer created a wallet address with similar alphanumeric characters, tricking the victim into transferring 97% of their assets.
Typically, investors validate wallet addresses by matching the first and last few characters, but fail to notice discrepancies in the middle characters that are often hidden on platforms for visual appeal.
In this case, the difference would have been noticeable if carefully examined.
The hacker behind the scam swiftly converted the stolen WBTC into approximately 23,000 ETH, a common tactic used to make siphoning easier through privacy protocols like Tornado Cash.
The converted funds remained dormant in the scammer’s wallet for six days.
On May 8, blockchain investigation firm PeckShield observed the movements of the stolen funds.
The scammer began splitting the loot into multiple parts and distributing them across several crypto wallets.
#PeckShieldAlert #Layering The scammer who grabbed ~$71 million worth of $WBTC via a poisoning #scam has laundered the stolen funds (~23K $ETH) by sending and spreading them across a large number of wallets. https://t.co/Blnw5TMT99 pic.twitter.com/CATCb6t1LL
— PeckShieldAlert (@PeckShieldAlert) May 8, 2024
To reduce traceability, around 400 wallets were used, ultimately leading to over 150 wallets holding the stolen funds.
However, at the time of writing, the stolen funds can still be traced back to the unknown scammer
Throughout history, crypto scammers and hackers have been particularly
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