Scammer Negotiates After $71M Bitcoin Theft

A recent digital heist involving $71 million in wrapped bitcoin (WBTC) has taken a surprising turn, as the alleged scammer reached out to their victim through Ethereum’s blockchain. The scammer, implicated in a poisoning attack, prompted the victim to provide contact details on Telegram, followed by sending over 51 ETH worth approximately $151,600.

This peculiar outreach occurred after the victim had publicly demanded the return of the majority of the stolen funds on May 5. The 51 ETH represents just 4.2% of their total request. According to on-chain data from Etherscan and insights from crypto investigator ZachXBT, the dialogue between the perpetrator and the victim unfolded via input data messages (IDM), a decentralized communication method on the Ethereum blockchain.

In the IDM, the victim’s message was firm and final: “There’s no turning back after this,” they stated, acknowledging the irreversible nature of tainted funds and the inevitability of tracking. “We both know there’s no way to clean these funds. You will be traced,” they added, setting the tone for a non-negotiable recovery of the stolen assets.

The victim further tightened the screws by demanding, “Nevertheless, we officially admit your right to 10%. Send 90% back. There are 24 hours for you before 10 a.m. UTC, 6th May 2024 to make a decision that will change your life, in any case.”

The scammer’s initial success on May 3 involved the transfer of 1,155 WBTC, leveraging a poisoning attack—a deceptive tactic where the scammer floods the victim with numerous transactions. This overwhelms the victim, increasing the chance of accidentally using the scammer’s address, which is cunningly made to resemble the victim’s own. The scammer might also employ vanity services or create multiple digital wallets to enhance the address’s resemblance, ensuring a higher probability of error.

WBTC, an ERC-20 token pegged to the price of bitcoin, has been a popular choice for such scams due to its significant value and integration within the Ethereum ecosystem. As of the latest, WBTC was trading at $61,442.96, having slid down 1.79% or $1,122.68 over the past 24 hours, as reported by The Block Prices.

The latest development in this high-stakes digital drama underscores the persistent risks and complexities within the crypto trading space. Victims and potential targets must remain vigilant, adopting robust security practices to mitigate the risk of similar attacks. The ongoing dialogue between the scammer and the victim will be crucial in determining the outcome of this significant digital theft.