A crypto trader reportedly sent $50 million in USDT to a scammer after an address poisoning scam attack, turning a lazy copy-and-paste into one of the costliest mistakes in crypto.
Stablecoins, such as USDT, have remained stable, so markets haven’t really moved following the attack, making this loss even more dangerous for everyday users. While headlines focus on massive exchange hacks, low-key wallet scams like this hit ordinary people where it hurts: their balances.
(Hacking versus scam)
With me, Akiyama Felix, let’s dive into the heart of this dirty scam. I will use my expertise gained from my years in cryptography to help you understand the do’s and don’ts.
Someone lost $50,000,000 because of a simple mistake.
He transferred $50 to a new address, then the scammer spoofed a wallet with the same first and last characters.
The user mistakenly copied the scammer’s address and did not completely double-check it.
And this mistake cost… pic.twitter.com/G1mku9NT8b
– Max Crypto (@MaxCrypto) December 20, 2025
What is an address poisoning attack and why should you care?
First of all, a cryptographic address looks like a long, random string of letters and numbers. Most of us never type it; Instead, we copy and paste, and poisoning scams abuse this habit.
Scammers send a fake transaction for $0 (or a small amount) from a wallet that looks almost identical to the one you use often. According to MetaMaskattackers often match the first and last characters of your real address, so at a glance everything looks fine.
The “poison” is not just a transaction you received. Attackers use the TransferFrom function of the USDT smart contract to trigger a transfer of $0.00 from your own wallet to their similar address. This makes it look like you were the one who sent the money, making it much more likely that you’ll trust them later.
Your wallet history now displays the fraudster’s lookalike address. The next time you pay a friend, send to an exchange, or transfer funds to your hardware wallet, you risk retrieving the wrong line in your history. A paste. One click. The money is gone.
Reports of address poisoning began to increase in early 2023, and Cointelegraph reported it as a growing threat. MetaMask and other wallets have warned users to stop relying on transaction history as an address book and to check every character before hitting send.
How does the fight against scams fit into the bigger crypto security problem?
This loss of 50 million US dollars is not an exceptional, one-off event. It sits alongside huge centralized hacks like the 2025 Bybit theft, where attackers drained around $1.5 billion, and the $235 million WazirX breach in 2024, as reported The guardian. Hackers now target both exchanges and individuals with equal attention.
Think of it like bank robbery or pickpocketing. The big exchange hacks are bank robberies. Address poisoning scams are pickpockets on a crowded street. If you only monitor bank doors, the pickpocket always gets your wallet.
USDT plays a huge role in crypto and DeFi trading. It acts as a crypto version of digital dollars. When someone loses $50 million in USDT in a single bad trade, it doesn’t break the stablecoin market, but it does remind everyone how final these transfers are. No chargebacks. No support ticket that returns the money.
To learn more about how these stablecoins are at the center of this story, you can read our coverage of the broader stablecoin market and how companies like Visa are now using them for payments in our stablecoin adoption report.
The Do’s: What should you change today to protect your wallet?
You don’t need to be afraid to trust yourself, but you do need to change a few habits. Start with one rule: never trust your transaction history as your address book. Treat it like a spam folder. It may contain something useful, but assume the worst.
Instead, save trusted addresses in a contact list. MetaMask, for example, lets you store known contacts so you don’t rely on random past transactions. Hardware wallets add another layer by requiring you to confirm the address on the device screen, not just on your laptop or phone. This extra check prevents many copy-paste errors.
Before any large transfer, read the full address on your hardware wallet or wallet pop-up. Not just the first and last four characters. Each character for life-changing amounts. It seems slow. It’s boring. That’s cheaper than a $50 million typo.
Make it a habit to test new addresses with a small “test transaction” first, especially for large moves or new exchanges. Think of it as sending a postcard before mailing the safe.
If you want to understand how these targeted attacks compare to other major wallet breaches, check out our recent report on a $27 million multi-signature wallet hack. Different method, same end result: the money disappears forever after a single security slip.
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How will these scams change user wallets and behavior?
As attackers get smarter, wallets will need to behave more like banking apps. Expect better address books, warnings when you send to an address you’ve never used, and maybe even block lists of fraudulent addresses. MetaMask already shares detailed tips and explains why double-checking each character is important in its safety guides.
Personally, I adopted the 4-4-4 rule: I check the first 4 characters, the middle 4 and the last 4. If there is one, I treat the entire address like a landmine. In a world of $50 million mistakes, paranoia is your best asset.
From the user’s side, this is the alarm signal. Every bull market attracts new people who treat crypto like a quick app download. But self-custody means you play the role of your own bank security team. Your habits determine whether a scammer will recover your funds.
Scammers will continue to invent new tricks, but you only need a short checklist to stay ahead of the game: use contacts, verify on device, test with small quantities, and never rush a life-changing shipment. Technology will improve, but your habits today already determine whether your next transaction is just another payment or your own $50 million horror story.
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The post Trader Loses $50 Million in USDT to Fight Scam: Check Your Wallet Habits appeared first on 99Bitcoins.
