A sponsored ad impersonated Trezor Suite; users who entered their recovery phrase were drained within minutes
In late October, someone searching Google for Trezor Suite saw an ad ranked above the real result. Clicking it led to a wallet software page that looked almost identical to the real thing. Sometimes it was hosted on its own domain; other times, it was tucked away on a Google Sites page. The page asked users to enter their recovery phrase, supposedly to restore their wallet. Within minutes of entering it, users found their balances gone.
So far, this wave has generated only five reports on Chainabuse, from several countries. One reporter said they had already filed a police report in the Czech Republic. The losses involved Bitcoin, Ether, and stablecoins. On-chain analytics tool Coinator tracked only the Bitcoin side—and found a much larger scale than the reports suggested.
The funds didn’t go straight to the scammers’ own wallets. They first landed at two fixed collection addresses. The first received 39 transactions totaling 3.32 Bitcoin between October 27 and 31. The largest single amount mentioned in a report was over 0.2 Bitcoin. The second address had no reports associated with it, yet received 56 transactions totaling 8.17 Bitcoin—more than twice as much as the first. Together, the two addresses received about 95 transactions, totaling 11.49 Bitcoin.
At 15:57 UTC on October 31, the second address was emptied in a single transaction with 56 inputs. Twelve minutes later, the first address was emptied in a transaction with 33 inputs. Both sets of funds went to the same intermediary address. That address received a total of 21.62 Bitcoin; the extra amount came from earlier deposits. Coinator’s assessment is that this group had received similar funds before. Starting at 17:12 UTC that day, the intermediary address began sending funds out in batches: first 2.0 Bitcoin, then 2.86 Bitcoin, and finally 1.54 Bitcoin. All three transactions had exactly the same fee of 564 satoshis, and their versions, lock times, and replaceability flags also matched—clear signs they came from the same wallet.
Of those three outgoing transactions, the 2.0 and 2.86 Bitcoin were still sitting untouched at their original addresses as of November 3. The 1.54 Bitcoin was moved in three steps that evening: first a 0.01 Bitcoin test, then 0.5 Bitcoin, and finally 1.03 Bitcoin. Each step passed through an intermediary address, and all the funds ultimately ended up in the hot wallet of the same custodial service. Since February 2025, this hot wallet has handled about 139,000 transactions, moving roughly 37,000 Bitcoin, and has been linked to 162,000 deposit addresses, almost all used just once. The same hot wallet also received funds from a fake Kraken support scam in August, and was the endpoint in a case in Argentina in late October. Three different scams, one destination for the money.
There’s an easy place to get the trail wrong. The 0.01 Bitcoin test payment went into a deposit address. A few hours later, that address was spent together with eight other deposit addresses and two of the hot wallet’s own inputs. Then 0.29 Bitcoin went to a new address, making it look as if the scammers had taken their money back—and somehow ended up with more. In reality, it was a payment from the custodial service to one of its customers. The deposit addresses and the hot wallet belong to the service provider; once the funds are in the provider’s hands, it no longer matters who originally deposited them. If you track the hot wallet as though it belongs to the scammers, you’ll identify the wrong people. The addresses worth keeping track of are the scammers’ two collection addresses.
For everyday users, the takeaway is very concrete. Only trust wallet software from the provider’s official website, and assume sponsored results at the top of search pages are fake. If a webpage asks for your recovery phrase, close it. If someone asks for it over the phone, hang up. Once you’ve entered your recovery phrase on a fake page, consider the wallet compromised. Use a clean device to create a new wallet with a new recovery phrase, then move any remaining funds as quickly as possible. And don’t skip reporting it: five reports are only the tip of the iceberg, and every additional report makes it a little more likely that the collection addresses will be spotted.
My take is simple: verify the official domain before downloading a wallet, and skip sponsored ads at the top of search results. Taking that extra moment is more useful than trying to trace the on-chain trail afterward.
When you download wallet software, do you click a search result directly, or check the official website’s domain first?
— web3 Chive Xiao Kai
This article shares personal views only and does not constitute investment advice. The facts are based on Coinator’s on-chain analysis from November 3 and Chainabuse reports.
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