In a surprising turn of events, crypto traders have fallen victim to $68 million in losses on Wrapped Bitcoin (WBTC). This fiasco was due to tainted transfer history mentioned by traders. This incident is a clear example of the “crypto nightmare” and a stark reminder to be cautious when transferring and trading cryptocurrencies.
$68 million worth of wrapped Bitcoin lost
The trader lost approximately $68.27 million worth of wrapped Bitcoin after he accidentally copied the wrong address from his tainted transfer history. According to a post on X by cryptocurrency detective Scam Sniffer, the victim sent 1,155.28 WBTC to the wrong address.
This unfortunate incident occurred just a few hours ago and shocked the crypto community. Furthermore, within hours of the transaction, Wrapped Bitcoin's price soared above $61,000. This surge increased the value of the transferred wrapped Bitcoins to more than $70 million, suggesting further losses to the victims.
WBTC, the tokenized version of Bitcoin, is a synthetic asset pegged to the value of Bitcoin (BTC). It operates on the Ethereum blockchain and allows users to access the liquidity and functionality of Bitcoin within the Ethereum ecosystem. However, the process of converting Bitcoin to WBTC involves complicated steps. This includes depositing Bitcoin into custodial wallets, which can expose users to potential risks.
Also read: ZKasino $33 million fraud suspect arrested, users still suffering
Web3 fraud losses decreased in April
Prior to this, cryptocurrency fraud losses in April 2024 recorded a dramatic 67% decrease compared to the previous month. The decline offered investors a glimmer of hope amid recent turmoil. In April, the crypto domain suffered 40 attacks, resulting in losses of $60.2 million. Meanwhile, in March, crypto assets worth $187.67 million were leaked.
However, despite this overall decline, significant breaches have occurred, with hedge finance emerging as the hardest hit victim, with losses of approximately $47.35 million. In addition, the attack on Hedgey Finance included a staggering $44 million worth of bonuses outstanding, with an additional $2 million in stolen funds laundered through Tornado Cash.
Other significant breaches include Fixed Float, which lost approximately $3 million, followed by Grand Base, which lost a total of $2.67 million. Pike Finance also lost $1.7 million worth of cryptocurrency funds. Additionally, X Bridge and Zest Protocol were also targeted, with losses amounting to $1 million each.
Also read: ARKB buys bullish, Bitcoin ETF outflows recover to $34 million
The published content may include the personal opinions of the author and may be subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
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