Crypto News Today- WBTC Scam Returns Stolen Funds Valued at $71 Million

The Thief Behind the WBTC Scam Returns Stolen Funds Worth $71 Million

Crypto News– In a surprising turn of events, a recent wallet poisoning scam resulted in the return of $71 million worth of stolen cryptocurrencies to the victim. The unknown attacker returned the stolen funds, primarily consisting of Ether tokens, on May 12, following increased attention from blockchain investigation firms due to the high-profile phishing incident.

On-chain security firm Lookonchain provided insights into the incident in a post on May 13. According to their findings, the attacker, possibly based in Hong Kong and utilizing VPNs, returned the funds after reports from firms like SlowMist_Team highlighted the suspicious activity.

The scam unfolded on May 3 when an investor fell victim to a wallet poisoning scam, sending $71 million worth of Wrapped Bitcoin (WBTC) to a bait wallet address. The scammer created a wallet address resembling the victim’s, making it difficult to discern the difference, especially in the hidden middle characters.

White-Hat Hacker, Benevolent Samaritan, or Fearful Thief: The Enigma Behind the $71 Million Return

Although the stolen funds were eventually returned, the on-chain transactions preceding the event indicate that this may not have been the original intention of the exploiter.

Upon receiving the stolen funds, the attacker promptly converted the 1,155 WBTC to around 23,000 ETH — a common tactic among malicious hackers aimed at laundering stolen funds through privacy protocols and cryptocurrency mixing services like Tornado Cash.

Starting on May 8, the attacker began dispersing the funds among more than 400 crypto wallets, ultimately distributing them across over 150 separate wallets before initiating the return of the assets.

The funds were returned shortly after the on-chain security firm SlowMist published an analysis on the attacker’s possible IPs originating from Hong Kong. This suggests that the thief may have been frightened by the potential repercussions.

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