Citi Warns of Ethereum Network Address Poisoning Surge
- Citi identifies address poisoning scams as key disruptors on Ethereum ETH -0.99% .
- Scam involves sub-$1 transactions to numerous addresses.
- Low fees facilitate these scams, impacting Ethereum activity.
Citibank analysts report a surge in address poisoning scams on the Ethereum network, identified between December 15, 2025, and January 18, 2026, impacting over 3.86 million addresses.
The observed increase in scam activity undermines Ethereum’s network integrity, potentially affecting investor confidence amid reduced transaction fees facilitating sub-$1 dust transactions.
Address Poisoning Scams on Ethereum
Citibank analysts have reported a surge in scams known as address poisoning on the Ethereum network. This phenomenon is primarily characterized by numerous low-value transactions that mimic real activity but serve fraudulent purposes.
The report indicates that numerous new Ethereum addresses have been receiving sub-$1 transactions as their initial interactions. This surge does not represent real economic growth but rather targeted scams exploiting reduced transaction fees.
Andrey Sergeenkov, a security researcher, detailed the mechanics, noting that 67% of the new addresses were part of these scams, affecting millions of addresses. This situation has presented a challenge for Ethereum’s network health indicators.
This exploitation is enabled by decreased fees from late 2025, making it economically viable for scammers to conduct large-scale campaigns without incurring significant costs. “67% of new addresses receiving sub-$1 ‘dust’ transactions are their first stablecoin interaction,” with 3.86 million out of 5.78 million fitting this pattern between December 15, 2025, and January 18, 2026.
Despite the warnings, there are no official statements from Ethereum leadership or regulatory bodies on the matter. The primary focus remains on identifying and mitigating the impacts of these scams.
The long-term outcomes of this situation could lead to enhanced scrutiny of Ethereum transactions and potential regulatory interventions. Analysts suggest that these trends require close monitoring to prevent further disruptions.
