Whale Address Targeted in Poisoned Transfer Attack Amounting to $9.4 Million ETH Loss

A major cryptocurrency holder has fallen victim to a sophisticated phishing scheme, losing a substantial amount of digital assets. According to Scam Sniffer’s real-time monitoring, the incident occurred when a whale address copied what appeared to be a legitimate wallet address from its previous transaction history. However, the address in the transaction log had been compromised or manipulated, resulting in a devastating loss of 4,556 ETH amounting to approximately $9.4 million at current market prices.

How the Attack Unfolded

The attack mechanism exploited a common user behavior: reusing addresses from transfer history. The victim’s wallet contained infected transaction records where malicious actors had inserted fraudulent addresses. When the whale address owner attempted to resend funds by copying from their transfer history, they unknowingly selected a malicious wallet instead of their intended recipient. The poisoned transfer executed successfully, draining the account before the error could be detected.

Understanding Poisoned Transfers

This type of attack, known as a “poisoned transfer” or address manipulation attack, has become increasingly sophisticated. Rather than compromising private keys, attackers focus on manipulating the user’s trust in their own transaction history. By injecting false addresses into blockchain records or compromising address books, they create seemingly legitimate pathways for transfers. The attack is particularly effective against whale addresses, which typically execute large transactions and may rely on address history for convenience.

Protection and Prevention

The Scam Sniffer team continues to monitor such incidents, flagging suspicious patterns to protect the community. Users, especially those managing substantial holdings, are advised to manually verify wallet addresses character-by-character rather than relying solely on copy-paste from transaction history. Hardware wallet confirmations and multi-signature protocols can significantly reduce the risk of such attacks amounting to devastating financial losses.

The incident underscores the ongoing security challenges in cryptocurrency management, even for sophisticated investors holding significant digital assets.