Agency loses $55K in address poisoning scam

The USA Drug Enforcement Administration (DEA) — the company tasked with imposing the nation’s drug legal guidelines — misplaced $55,000 in seized Tether (USDT) earlier this 12 months by the hands of a scammer.

Forbes reported on Aug. 24 that in Might, the company seized over $500,000 price of USDT from two Binance accounts it suspected of laundering cash from drug gross sales as a part of a multi-year investigation.

The funds have been put in DEA-controlled Trezor crypto wallets and saved securely, in accordance with a search warrant seen by Forbes. As a part of customary forfeiture processing the DEA despatched a check quantity of simply over $45 price of USDT to the U.S. Marshals Service.

An on-chain sleuth picked up on the transaction after which shortly arrange a crypto pockets with the identical first 5 and final 4 characters of the Marshals account — a rip-off tactic often known as “tackle poisoning.”

The scammer airdropped a token to the DEA’s pockets in order that the spoofed tackle will seem as a latest transaction, and thus tricking the proprietor into by accident transferring funds to the fallacious tackle.

I nearly received hit by an tackle poisoning rip-off.

Despatched a second tx to somebody simply after the primary, and was lazy and simply copy pasted his tackle from my transaction historical past.

Yup, copy pasted the poison tx tackle.

Simply earlier than confirming, @Rabby_io knowledgeable me that I had by no means… pic.twitter.com/XlHPTs8PZy

— N̴̡̩̠̻̩͜͝a̴͍͙̫̹̅u̶̼̠̭͐̂͘h̷͇̻̭̚c̴͉͈̎̂̅͗̉̈́̆͑̍̀ (@nauhcner) April 18, 2023

The tactic labored towards the DEA agent, who despatched over $55,000 to the scammer.

By the point the Marshals observed and alerted the DEA who in flip requested Tether to freeze the funds it was too late.

The USDT had already been swapped for Ether (ETH) and Bitcoin (BTC) after which shifted to completely different crypto wallets.

Associated: SEC prices former corrections officer with position in weird crypto rip-off

The DEA alongside the FBI is investigating the incident and is but to search out whose behind the assault. All they’ve discovered to this point are two Binance accounts that paid for the attacker pockets gasoline charges which used two Gmail e-mail addresses to enroll.

It is hoped Google has some data that can be utilized to nab the proprietor of the Gmail accounts.

The DEA didn’t instantly reply to a request for remark.

Journal: $3.4B of Bitcoin in a popcorn tin — The Silk Street hacker’s story