Introduction
The US Drug Enforcement Administration (DEA) has reportedly lost funds due to an address poisoning scam involving Tether. Address poisoning scams involve hackers intercepting cryptocurrency transactions and altering the destination address in order to steal funds.
The Scam
In this case, the DEA was investigating a drug trafficking operation and seized over $6.2 million in cryptocurrency, including Tether. The funds were stored in a wallet owned by the DEA, but the hackers were able to intercept the transaction and replace the destination address with their own. As a result, the funds were sent to the hacker’s wallet instead of the DEA’s.
Tether’s Response
Tether has released a statement in response to the incident, stating that they were not responsible for the loss of funds and that the issue was related to the DEA’s security practices. Tether emphasized the importance of proper security measures when dealing with cryptocurrency, including the use of multi-signature wallets and cold storage.
DEA’s Response
The DEA has not yet released an official statement regarding the incident, but it is likely that they will face criticism for their lack of security measures. This incident highlights the importance of proper security practices when dealing with cryptocurrency, especially for government agencies involved in investigations and seizures.
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Conclusion
The DEA’s loss of funds in this address poisoning scam involving Tether serves as a reminder to all cryptocurrency holders of the importance of proper security practices. It is crucial to take steps to protect your cryptocurrency from scams and hackers, including the use of secure wallets and multi-factor authentication. Cryptocurrency exchanges and government agencies must also prioritize security measures to prevent incidents like this from occurring in the future.
