Beware of all cryptocurrency airdrops: Exposing blockchain scams!

Kahn332

"Last year, the cryptocurrency space witnessed a highly sophisticated scam that managed to accumulate over a billion dollars in just three months. The final destination of the funds, however, was a coin mixer, making all the scammed funds completely untraceable. How was the entire scam executed?

The question arises as to why such a substantial sum of money could completely disappear without a trace. The scam, known as the 'same last-digit airdrop' scheme, targeted users with large transaction volumes and high frequency by continually airdropping small amounts of USDT, such as 0.01 USDT.

The scammer's sending address had the exact same last digits as the user's address. When users copied the address from their transaction history, they inadvertently copied the fake address provided by the scammer, resulting in asset losses that ultimately flowed into the coin mixer.

So, how did they manage to remain hidden? This brings us to Tornado Cash, also known as a tornado mixer, which is the largest Ethereum-based coin mixer. It can send ERC20 tokens from one address to any other address in an extremely difficult-to-trace manner.

Most cryptocurrency enthusiasts are aware that their addresses offer a certain degree of privacy. However, the total assets within an address, along with every transaction and operation, can be traced because this data is public. It is not complete anonymity, but rather pseudonymity.

When withdrawing funds to an exchange, you are usually required to provide your real-name information. So, is a coin mixer truly private? Several factors determine whether the coins you send to a coin mixer can achieve complete anonymity, particularly if the assets in question have a shallow transaction history.

In such cases, the transactions can be easily traced, negating the anonymity factor. However, for the majority of users with average transaction histories, coin mixers provide a significant level of anonymity. Not only do coin mixers help obscure your transactions, but the project teams also provide valuable security tips.

For instance, they advise on local network security and transaction amount relevance. These guidelines are highly beneficial. As the leading ERC20 coin mixer, Tornado Cash has faced severe scrutiny from the United States. Nevertheless, the project team has relinquished control over all deposit pools, ensuring the project's perpetual operation!"

Indra55

There are too many professional words and I can’t understand them...

Jatin255

I have very limited knowledge when it comes to the intricacies of cryptocurrencies. It seems like you have insights to share. Could you provide some basic information on the subject?

Iti9

Today, while browsing cryptocurrency news, I came across reports of a new type of scam targeting major exchanges and wallets. It seems like scams in this space are becoming increasingly sophisticated and challenging to prevent.

Shri

I also warned a friend the other day to be really careful. Nowadays, even official websites can be breached by hackers who deceive cryptocurrency buyers.

gulab

As long as we're not actively trading cryptocurrencies, we don't have to worry too much. However, we do hope for stability in coin values because it can be frustrating when making deposits and withdrawals.

raman

New types of scams are on the rise, and it's becoming increasingly difficult to guard against them.