WBTC SCAM: Scammer Interacts with Victim through Telegram, Refunds Half of Stolen Crypto

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by Giorgi Kostiuk

2 years ago

Made with AI


A scammer who played a role in a sizable poisoning scam that led to a loss of $71 million worth of Wrapped Bitcoin (WBTC) has made contact with the victim via Telegram, offering to return 50% of the stolen funds. This incident came to light on May 3, 2024, causing concern in the cryptocurrency community. Following this, on May 10, 2024, Peckshield, an on-chain security firm, revealed that the scammer had sent 51 ETH to the victim and requested communication through Telegram.

Based on Peckshield's Alert, the scammer proceeded to return around 50% of the stolen funds to the victim's address in Ethereum, totaling 11,446.87 ETH, approximately $35 million. However, this return was done in three separate transactions, leaving the victim anticipating the return of the remaining 50% of the stolen funds.

This act of returning part of the stolen cryptocurrency takes place amidst increased financial losses within the crypto industry due to hacks, exploits, and scams. While the losses decreased compared to previous months, with over $449.3 million lost in April 2024, this incident highlights the risks involved in cryptocurrency investments.

The original phishing attack that led to the theft of 1155 WBTC involved a complex method where phishing addresses with similar starting and ending digits to the victim's intended transfer address were generated. As a result, the victim inadvertently transferred the WBTC to the phishing address, causing substantial financial harm.

In response to the situation, security firms like Peckshield and SlowMist have been actively monitoring fund movements and investigating the hacker behind the scam. The investigation revealed extensive phishing activities across various blockchain networks, indicating a deliberate strategy by the hacker to target unsuspecting individuals.

Despite the partial return of the stolen funds, many questions remain regarding the scammer's motives and the possibility of further restitution.

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