In a surprising turn of events, a hacker involved in an address poisoning attack that led to the theft of 1,155 Wrapped Bitcoin (wBTC), valued at $68 million, has returned almost all the funds to the victim. This resolution follows intense negotiations that began on May 10, according to blockchain data analyzed from the victim’s account.
Successful Recovery of Stolen Crypto
Blockchain records reveal that the hacker, who initially converted the stolen wBTC into Ethereum (ETH), returned approximately 22,960.07 ETH to the victim’s wallet. This amount, worth about $65.7 million, constitutes over 96% of the initial dollar value stolen. The funds were returned via a sequence of more than 225 wallet transactions, varying between 29 and 67 ETH each.
Negotiations Lead to Nearly Full Restitution
The process of restitution occurred after a series of communications between the victim and the attacker. Initially, the victim had consented to let the attacker retain 10% of the stolen funds as a bounty. However, it appears that agreement was discarded, as the victim received back more than 90% of the stolen assets by the end of the negotiation period.
Also Read: $71 Million WBTC Stolen Funds Shifted To Hundreds of Wallets
Role of Blockchain Security in Recovery
A report from blockchain security platform Match Systems played a crucial role in these developments. The platform conducted a detailed analysis which, it claimed, significantly strengthened the victim’s position during negotiations. Their findings reportedly helped pinpoint potential leads on the attacker’s identity, pressuring them to return the stolen assets. Following the recovery, the victim reportedly has no ongoing complaints against the attacker.
Address Poisoning: A Preventable Risk
Address poisoning is a technique where attackers exploit the similarities in wallet addresses to deceive users into sending crypto to the wrong address. This case highlights the potential severity of such attacks but also shows that careful scrutiny of transaction details and robust security measures can mitigate the risks associated with digital asset transfers.
Experts continue to advise crypto users to rigorously inspect receiving addresses before executing any transactions to prevent similar incidents.
