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Trader Loses $50 Million in USDT After Address‑Poisoning Copy‑Paste Scam

Rapid swaps into ETH plus Tornado Cash deposits leave recovery prospects slim, investigators say.

Overview

  • The victim sent a 50 USDT test, then copied a look‑alike address planted by a dust transaction and transferred 49,999,950 USDT to the scammer.
  • On‑chain trackers report the thief converted the funds via DAI into ETH and pushed large tranches through Tornado Cash, hindering tracing and freezes.
  • The victim posted an on‑chain ultimatum offering a $1 million bounty for the return of 98% within 48 hours, warning of legal and law‑enforcement action.
  • Blockchain data indicates the $50 million was withdrawn from Binance shortly before the theft, with security firms attributing the ruse to automated bots that target test transfers.
  • Researchers describe a 2025 shift toward behavioral wallet scams like address poisoning, and a bipartisan SAFE Crypto Act proposal would create a federal task force to combat crypto fraud.