In the fast-paced world of cryptocurrency, scams continue to threaten the security and investments of unsuspecting individuals. The latest wave of fraud comes in the form of USDT approval mining scams, where criminals deceive users and reap tremendous financial rewards. In this article, we delve into a recent incident, shed light on the modus operandi of these scammers, and highlight the alarming extent of their success.

A Costly Deception:
A prominent crypto investor recently fell victim to a USDT approval mining scam, losing a staggering $4.46 million worth of assets. The incident occurred immediately after the investor withdrew their USDT from the Kraken exchange. Utilizing manipulated wallet addresses resembling those associated with the reputable Coinone cryptocurrency mining exchange, the scammers cunningly managed to swindle the unsuspecting victim.

Insights from Security Experts:
Blockchain security firms, such as Scam Sniffer and Peckshield, have been working diligently to uncover the intricate workings of these scams. Scam Sniffer, using data from Etherscan, discovered that the scammers swiftly exchanged the stolen USDT for DAI stablecoin through the Tokenlon decentralized exchange. Further investigations conducted by Peckshield shed light on the subsequent split of the loot, with over 1 million DAI sent to four separate wallet addresses.

The Alarming Scale of USDT Approval Mining Scams:
According to a report by Dune Analytics, USDT approval mining scams have become a troubling crypto pandemic, surpassing the influence of even legitimate entities in attracting new participants to the crypto space. These scams typically commence with the scammers initiating seemingly harmless communication via avenues such as email or online platforms. Gradually, they establish rapport and entice victims into investing in fraudulent cryptocurrency schemes under the illusion of a lavish lifestyle.

Dune Analytics reveals that these scams have ravaged the finances of 21,953 individuals, resulting in a collective loss of over $337.08 million. On average, each victim has suffered losses amounting to approximately $21,953. Since the first recorded transaction in September 2021, there have been a staggering 49,427 USDT approval mining scam transactions, with an average of $6,820 stolen per incident.

Crypto Scams Remain a Widespread Menace:
USDT approval mining scams are just a fraction of the large-scale fraudulent activities plaguing the cryptocurrency industry. Prominent figures such as Mark Cuban, who lost $870,000 to a phishing link, and Binance CEO Changpeng “CZ” Zhao, who has warned about zero-transfer phishing attacks, serve as reminders of the relentless threats faced by investors and enthusiasts alike.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.