USDT Security Alert: Investor Loses $2.6M in Sophisticated Phishing Attack

A cryptocurrency investor recently suffered a significant loss of $2.6 million in Tether (USDT) due to a sophisticated phishing attack. The incident, reported by security firm Cyvers on May 26, 2025, involved two transactions totaling $2.6 million, executed through a deceptive on-chain tactic known as a zero-value transfer. The scammers exploited the ERC-20 token standard’s transferFrom function, taking advantage of user habits around wallet addresses. This highlights the ongoing risks in the crypto space and the need for heightened security measures.

Crypto Investor Loses $2.6M in USDT to Sophisticated Phishing Attack

A cryptocurrency investor fell victim to a double phishing attack, losing $2.6 million in Tether (USDT). The incident, flagged by security firm Cyvers on May 26, involved two transactions—$843,000 followed by $1.75 million—executed through a deceptive on-chain tactic known as a zero-value transfer.

Scammers exploited the ERC-20 token standard’s transferFrom function, capitalizing on user habits around wallet addresses. The attack underscores the growing sophistication of social engineering in crypto crime and the pressing need for enhanced security measures in Web3 ecosystems.

Zero-value transfers manipulate how users interpret transaction history, highlighting vulnerabilities in current wallet interfaces. As phishing methods evolve, the industry faces mounting pressure to develop robust safeguards against such exploits.

TRON Network’s USDT Transactions Hit $600B All-Time High, Outpacing Ethereum

The TRON network has achieved a record $600 billion in USDT transactions, solidifying its position as a preferred platform for stablecoin transfers. This milestone underscores TRON’s competitive edge in cost efficiency and transaction speed, attributes that have consistently allowed it to outperform ethereum in USDT volumes since January 2022.

While Ethereum remains dominant in NFT and DeFi ecosystems, TRON’s ascendancy in stablecoin settlement reflects a broader shift in user preference. Lower gas fees and faster confirmation times are driving this migration, creating a widening gap between the two networks.

Network activity and whale movements suggest a resurgence in TRON’s momentum. The blockchain’s strategic focus on stablecoin utility appears to be paying dividends, challenging Ethereum’s long-held supremacy in certain segments of the digital asset market.

Double Trouble: Crypto User Loses $2.5M By Copying Same Scam Address Twice

A cryptocurrency user suffered a devastating $2.5 million loss after mistakenly sending funds to a scammer’s address—not once, but twice. The victim attempted to transfer 843,166 USDT to a secure wallet but instead pasted a fraudulent address from their transaction history. The error drained $838,611 in the first transaction, followed by an additional $1.7 million in a repeated attempt moments later.

On-chain records reveal the grim sequence: a correct transfer to address 0x4668D1Fe..., immediately overshadowed by identical misdirected payments. This incident highlights the unforgiving nature of blockchain transactions, where irreversible errors compound with brutal efficiency. The ’history poisoning’ tactic—where scammers manipulate transaction histories—has emerged as a growing threat to even experienced users.