Crypto Scams: The USDT Approval Mining Scam

Introduction

Crypto scams continue to be a major concern in the rapidly growing digital financial world. Recently, an anonymous crypto investor fell victim to a fraudulent practice, losing a staggering $4.46 million in crypto within seconds. This tragic story once again highlights the importance for crypto investors to remain vigilant.

“USDT Approval Mining Scam” in Detail

This crypto scam occurred just one minute after the investor withdrew 4.46 million USDT stablecoins from the Kraken exchange. Using data from Etherscan, Scam Sniffer identified that the scammers approached their victims with a fake wallet address that appeared to be from the Coinone cryptocurrency mining exchange.

The Anatomy of an Approval Mining Scam

An approval mining scam, also known as a fake exchange scam, involves scammers deceiving individuals into transferring their cryptocurrency to a fake exchange. These scammers lure victims by impersonating a legitimate exchange and offering attractive incentives.

Peckshield’s Analysis of the Scam

Peckshield, a blockchain security company, further investigated this crypto scam. They reported that the scammers had already exchanged all the USDT tokens for the DAI stablecoin through the Tokenlon decentralized finance (DeFi) exchange. The scammers then divided the loot and sent slightly over 1 million DAI to four different wallet addresses.

The Alarming Numbers of Crypto Scams

According to Dune Analytics, this specific type of scam is becoming a plague in the crypto world. Surprisingly, these scams attract more people than legitimate crypto companies. They usually start with an innocuous message sent to their targets via email or other online platforms. After establishing contact, the scammers build trust and lure victims into a fraudulent cryptocurrency scheme.

The report indicates that since September 2021, more than $330 million has been stolen from nearly 22,000 victims through USDT approval mining scams. Even well-known billionaire Mark Cuban recently lost approximately $870,000 in assets after unknowingly clicking on a phishing link. It is clear that crypto scams remain prevalent in the crypto sector.

In conclusion, the USDT approval mining scam is a grave concern in the crypto world. It is crucial for crypto investors to exercise caution and remain vigilant to protect their assets from falling into the hands of scammers.