$100 Million Shiba Inu (SHIB) Thief Returns U.Today
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The crypto scammer behind the poisoning attack, responsible for stealing wrapped bitcoin (WBTC) worth $71 million, contacted the victim and asked for their Telegram details before sending over 51 ETH, equivalent to approximately $151,600.
The interaction, made known by the crypto investigator ZachXBT, was carried out on the Ethereum blockchain via an input data message (IDM), a type of peer-to-peer messaging.
Crypto Scammer Contacts Victim and Sends 51 ETH
Based on on-chain data provided by Etherscan, the scammer wrote to the victim twice, communicating the latter to offer their Telegram contact. “Leave your telegram, and I’ll call you tomorrow,” read the message from the scammer.
This outreach results from the victim’s demand of May 5 to return 90% of the stolen funds. The 51 ETH returned by the scammer represents about 4.2% of the requested amount.
#PeckShieldAlert The scammer took ~$71 million worth of WBTC through a poisoning scam and has now sent 51 ETH to the victim, along with a message pic.twitter.com/GL1I6eubWf
— PeckShieldAlert (@PeckShieldAlert) May 9, 2024
The victim responded through an IDM, warning the scammer about the traceability of the stolen funds and demanding a return of 90%.
“There’s no turning back after this,” the victim wrote, adding, “We both know there’s no way to clean these funds. You will be traced.”
The victim gave the scammer a day to deliver, with the deadline set at 10:00 am UTC on May 6, 2024.
Details of the Poisoning Attack
The theft occurred on May 3rd when the scammer moved 1,155 WBTC, worth $71 million, to his address. This manner of scam, called a poisoning attack, occurs when the attacker bombards the victim with a significant number of blockchain transactions.
The aim is to deceive the victim into repeating the fraudster’s address rather than their own. Attackers usually exploit vanity services or open numerous digital wallets with addresses resembling the victim’s to achieve a mistaken act.
Wrapped Bitcoin (WBTC) is an ERC-20 token tied to Bitcoin’s price. However, despite issues surrounding it, as of press time, WBTC was valued at $62,410, having increased by 0.26% in the past 24 hours.
The victim demanded the return of most of the stolen funds after realizing that tracking and laundering such a large sum would be difficult. The 51 ETH returned by the scammer may indicate a willingness to negotiate or a recognition of the difficulty in using the stolen funds without detection. However, the motives behind the scammer’s partial repayment and request for direct communication remain unclear.
Concurrently, blockchain sleuth ZachXBT noted that this form of communication and partial return of funds is unusual in such high-profile scams.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
As announced by the U.S. Attorney’s office for the Southern District of New York, a defendant who pleaded guilty to wire fraud charges related to “unlawfully obtained” Bitcoin (BTC) from the Silk Road marketplace has been finally been sentenced. The 32-year-old James Zhong stole more than 50,000 BTC from the infamous drug-trafficking site back in 2012 when BTC was worth around $12.
Second Highest Bitcoin Heist
According to reports, Zhong was able to hide his theft for about ten years before being apprehended. However, in November 2021, American officials raided Zhong’s home in Georgia and seized all Bitcoin assets, discovering the majority of the digital currency in a floor safe and a computer hidden inside a popcorn tin. At the time, the value of the cryptocurrencies was around $3.4 billion, making it the second-largest financial seizure in US history.
In the U.S. Attorney’s sentencing memo for Silk Road Bitcoin stealer James Zhong: investigators seized criminal proceeds from “a single-board computer that was submerged under blankets in a popcorn tin stored in a bathroom closet.” (Sentencing is today at 3 pm). pic.twitter.com/7aamQryQ6B
— Rachel Scharf (@rscharf_) April 14, 2023
The prosecutors claim that Zhong spent nearly $16 million of the revenues on investments in real estate, luxury hotels, lavish pubs, nightclubs, and in owning a fleet of Lamborghinis. Considering today’s Bitcoin price, the confiscated asset is now estimated to be around $1.56 billion.
Read More: Elon Musk Launches New AI-Driven Company, Calls It X.AI
Exploiting Silk Road’s Flaw
Zhong reportedly took advantage of an inherent flaw in Silk Road’s wallet feature which eventually led him to multiplying his Bitcoin stack. The U.S. Department of Justice notes that in one instance, Zhong transferred 500 bitcoins into a wallet and within five seconds made five quick withdrawals. By doing so, he exploited a weakness in Silk Road’s system, which resulted in his initial investment turning into 2,500 Bitcoins.
Additionally, Zhong enjoyed the hard fork split that occurred in 2017 between Bitcoin and Bitcoin Cash (BCH), were he received and equivalent amount of 50K BCH as well. Apart from the 50K Bitcoins, the law enforcement were also able to seize nearly $662,000 in cash, 25 Casascius coins and metal coins which represented physical Bitcoins but in reality contained private keys to gain access to the real virtual currency.
Also Read: This SEC Commissioner Wants To Redefine ‘Exchange’; Will It Save Crypto In US?
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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