A user lost nearly $50m in a stablecoin address poisoning scam after copying a fake address, as U.S. senators push the SAFE Crypto Act to tackle rising crypto fraud.
Summary
- A stablecoin user sent 49,999,950 tokens to a poisoned address copied from transaction history after an initial test transfer to the correct recipient.
- Address poisoning scams plant near‑identical wallet addresses in history, exploiting copy‑paste habits rather than protocol bugs or smart contract exploits.
- The bipartisan SAFE Crypto Act would create a federal task force linking agencies, law enforcement and industry to detect and disrupt crypto fraud schemes.
A cryptocurrency user lost nearly $50 million in an address poisoning scam after copying a fraudulent address from transaction history, according to blockchain security firm Web3 Antivirus.
Crypto scams proliferate
The incident, which resulted in one of the largest on-chain losses this year, occurred when the user initially sent a small test transaction to the intended address but minutes later mistakenly transferred 49,999,950 units of a stablecoin to a poisoned address copied from transaction history, Web3 Antivirus reported.
Address poisoning scams involve malicious actors planting look-alike wallet addresses in a user’s transaction history. The fake addresses closely resemble intended recipient addresses, often differing by just a few characters, according to security experts. The scam exploits copy-and-paste behavior rather than targeting technical vulnerabilities.
The victim’s wallet had been active for approximately two years and was primarily used for stablecoin transactions, according to the security firm. The funds were withdrawn from Binance shortly before the poisoned transfer occurred.
Cryptocurrency-related hacks have increased in 2025, resulting in billions of dollars in losses, according to industry data. In response, Senators Elissa Slotkin and Jerry Moran introduced the bipartisan SAFE Crypto Act, which proposes a federal task force to strengthen enforcement, improve interagency coordination, and address cryptocurrency fraud.
The SAFE Crypto Act, officially titled the Strengthening Agency Frameworks for Enforcement of Cryptocurrency Act, seeks to establish a federal task force dedicated to identifying, monitoring, and preventing cryptocurrency-related scams. The legislation aims to enhance coordination between government agencies, law enforcement, and private-sector specialists, targeting investment fraud losses that disproportionately impact older investors, according to the bill’s sponsors.
The proposed legislation invites participation from digital asset service providers, stablecoin issuers, custodians, blockchain intelligence firms, consumer protection groups, and victims’ advocacy organizations.
The task force would analyze trends across cryptocurrency fraud, focusing on Ponzi schemes, rug pulls, fraudulent token offerings, money laundering, and financial grooming scams, according to the proposed legislation.
Security specialists recommend verifying addresses through multiple sources, using hardware wallets for large transfers, and employing on-chain monitoring tools to detect suspicious activity before sending significant funds, according to industry experts.
