A crypto investor has lost $4.46 million worth of assets to a USDT Approval mining scam. According to a report from the blockchain security platform Scam Sniffer, this crypto scam occurred a minute after the investor withdrew 4.46 million USDT from the Kraken exchange. 

Using data from Etherscan, Scam Sniffer also detected that the scammers targeted their victims with a fake wallet address that was manipulated to look like it was from the Coinone cryptocurrency mining exchange.

Meanwhile, Peckshield, another blockchain security firm, has provided more insight into this recent crypto scam. Peckshield reports that the scammers have already swapped all USDT tokens for the DAI stablecoin via the Tokenlon decentralized exchange. 

Thereafter, these bad actors proceeded to split the loot, sending a little over 1 million DAI to four separate wallet addresses.

Over $337 Million Lost To USDT Approval Mining Scams – Dune Analytics

According to a report from Dune Analytics, USDT approval mining scams are developing into a crypto pandemic, introducing more people to the crypto space than even credible crypto businesses.

Related Reading: TikTok Faces Challenge As Elon Musk Crypto Scams Multiply

Similar to most scams, USDT approval mining scams usually begin with the bad actors sending an “innocuous” message to their targets either via email or other online platforms. 

Following a response to this message, these scammers will now attempt to build a relationship with their target victims as they gradually introduce them to a “flashy lifestyle” funded by crypto assets. 

Sometimes, they may dedicate months to these efforts of building trust before finally prompting their victims to invest in a fraudulent cryptocurrency scheme. 

Based on more information from this report, scammers have now stolen over $337.08 million from 21,953 victims through USDT approval mining scams, averaging $21,953 per victim.

The report states that the first recorded transaction involving this type of scam occurred on September 23, 2021. From then till now, Dune Analytics states that there have been 49,427 USDT approval mining scam transactions with an average of $6,820 stolen per transaction. 

Crypto Scams Still a Growing Menace

In other news, crypto scams, in general, still remain a major issue for all investors and enthusiasts alike. Just recently, Billionaire entrepreneur Mark Cuban lost about $870,000 worth of assets after unknowingly engaging with a phishing link. 

Related Reading: Thailand Authorities Bust $27 Million Crypto Scam, Over 3,200 Victims Affected

Back in August, the CEO of Binance, Changpeng “CZ” Zhao, had also posted on X, alerting crypto users to the increasing intelligence of scammers in the crypto community.

The Binance Boss spoke on a specific type of scam known as zero-transfer phishing attacks, advising users on the best methods of prevention and asset recovery.