Blockchain firm Match Sytems saves $68m from ‘dust attack’

Blockchain forensics company Match Systems announced Saturday the recovery of $68 million of stolen crypto.

The theft, which occurred on May 3, was dubbed a “‘dust’ attack.” The funds were returned to the victim, courtesy of UAE-based Match Systems and cryptocurrency exchange Cryptex.net.

Crypto whale lost $69.3 million in WBTC

The saga, reported by crypto.news earlier this month, began when a crypto whale fell victim to an “address poisoning” attack, resulting in the brazen theft of 1,155.28 WBTC.

That’s equivalent to a staggering $69.3 million at the time.

Blockchain data shows that initial attempts by the victim to establish contact with the attacker, even extending an enticing 10% bounty offer, were met with silence. 

However, in an unexpected turn of events, on May 9, the attacker initiated contact, expressing a desire to reach out to the victim via Telegram.

According to Match Systems CEO Andrei Kutin, the victim sought his company’s expertise to trace and recover the funds.

The breadcrumb trail left by the heist’s perpetrators led to a series of complex transactions. The stolen funds reportedly bouncing between various addresses to obfuscate their origins. 

However, Match Systems’ investigators proved to be more than a match for their adversaries, meticulously tracing the illicit flow of assets and gradually closing in on the perpetrators.

Puzzle remains

The company did not provide the full details surrounding the recovery of the stolen funds. Furthermore, the abrupt shift in the attacker’s stance, from ignoring the victim’s attempts at communication to actively seeking contact, has raised intriguing questions within the crypto community.

Match Systems only reported that after an intense week-long pursuit, it successfully retrieved the stolen funds and returned them to their rightful owner. 

Despite the slight depreciation, attributed to the conversion of WBTC to Ether (ETH) by the attacker, the victim is said to have reclaimed their lost fortune in its entirety.

Victims urged to report theft promptly

Address poisoning, a deceptive ploy that mimics legitimate wallet addresses, poses a significant threat to users’ financial security.

According to Match Systems, the earlier victims of incidents like address poisoning alert specialists, the better their chances are of recovering their stolen funds. 

The company estimates that the chances of asset recovery are as high as 70% if victims report incidents within the first hour. Successful recovery odds fall to 60% if cases are reported within four hours; 50% when reported within the first 24 hours.

Chances of a successful outcome are even slimmer, 20%, if you wait a month to report the incident.