Aave Hits $60B Deposit Milestone as Phishing Attacks Steal $3.05M

Aave, one of the leading decentralized finance (DeFi) protocols, was targeted by a phishing attack shortly after it reached $60 billion in net deposits across 14 blockchains, a major milestone in the DeFi industry. The attack occurred as users were lured through Google Ads that impersonated the Aave platform, redirecting them to malicious websites designed to steal crypto funds [1].

The phishing site, identified as aaxe.co.com, closely mirrored Aave’s official platform and was promoted through top search results. When users clicked on the ads and connected their wallets, scammers were able to execute malicious transaction signatures, draining victims’ funds [2]. One user reportedly lost $3.05 million in Aave-wrapped USDT (aEthUSDT) after unknowingly signing a fraudulent transaction [3].

This attack is not an isolated incident. In October 2024, a similar phishing scam led to the loss of $2.28 million in Aave-wrapped DAI tokens, when a wallet holder was tricked into approving a malicious contract [4]. These events highlight a growing trend of ad-based phishing attacks in the crypto space, where scammers exploit user trust in search engine results and well-known platforms.

Security experts have repeatedly warned users to verify website URLs before connecting their wallets and to use tools like Revoke.cash to revoke suspicious permissions. In the event of a suspected breach, experts recommend immediately transferring funds to a secure wallet and discontinuing the use of any compromised account [5].

Aave’s rapid growth—its net deposits have more than tripled since August 2024—has drawn significant attention from both investors and malicious actors. While the protocol continues to attract institutional interest and expand its global footprint, the phishing attack underscores the persistent risks associated with user behavior and outdated standards such as EIP-7702 [6].

Despite the incident, Aave (AAVE) remained resilient in the market, with the token trading at $272.80 at the time of the attack, a 7.26% increase in the previous 24 hours. The DeFi community celebrated the $60 billion milestone as a sign of growing institutional confidence and the maturation of on-chain finance. However, the attack serves as a stark reminder that security remains a critical challenge as the sector scales [7].

Sources:

[1] AInvest – [https://www.ainvest.com/news/aave-users-targeted-google-ads-phishing-scam-60b-deposit-milestone-2508/](https://www.ainvest.com/news/aave-users-targeted-google-ads-phishing-scam-60b-deposit-milestone-2508/)

[2] bitemycoin.com – [https://bitemycoin.com/news/aave-suffers-phishing-attack-after-60b-milestone/](https://bitemycoin.com/news/aave-suffers-phishing-attack-after-60b-milestone/)

[4] AInvest – [https://www.ainvest.com/news/aave-teams-plasma-attract-1-billion-institutional-capital-defi-2508/](https://www.ainvest.com/news/aave-teams-plasma-attract-1-billion-institutional-capital-defi-2508/)