Trader Loses $12.4M in Address Poisoning Scam

Published by

Sohrab Khawas

January 31, 2026

Trader Loses $12.4M in Address Poisoning Scam

A crypto trader lost 4,556 ETH (about $12.4 million) after mistakenly copying a poisoned wallet address that looked nearly identical to Galaxy Digital’s legitimate deposit address. Scammers had polluted the victim’s transaction history with tiny dust transfers from a fake address that shared the same first and last characters as the real one. Thinking he was sending funds to Galaxy Digital, the trader pasted the poisoned address and executed a transfer, only for the attacker to sweep almost the entire balance, leaving the wallet with just 6.8 ETH. This incident highlights the risk of relying on transaction history and the importance of always verifying full wallet addresses before sending large amounts.

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Sohrab Khawas

Sohrab is a passionate cryptocurrency news writer with over five years of experience covering the industry. He keeps a keen interest in blockchain technology and its potential to revolutionize finance. Whether he's trading or writing, Sohrab always keeps his finger on the pulse of the crypto world, using his expertise to deliver informative and engaging articles that educate and inspire. When he's not analyzing the markets, Sohrab indulges in his hobbies of graphic design, minimal design or listening to his favorite hip-hop tunes.

Published by

Sohrab Khawas

Tags: Crypto news