Crypto Victim Loses $908,551 in 458-Day Phishing Attack Linked to Old Wallet Approval

A cryptocurrency user recently became the target of a complex and long-term phishing attack that ultimately resulted in a loss of $908,551 in USDC. Onchain data reveals that the scam originated from an ERC-20 approval transaction signed over 458 days earlier, which granted the scammer’s wallet, “0x67E5Ae,” continuous access to the victim’s funds [1]. This unauthorized approval was likely obtained through a phishing website or a fake airdrop [2].

The scammer, linked to the notorious pink-drainer.eth wallet address, executed the theft on August 2 at 4:57am UTC, making off with the entirety of the victim’s funds. The attack only became viable after the victim, on July 2, deposited $762,397 into the compromised wallet, followed by an additional $146,154 in USDC from a Kraken wallet within ten minutes [1]. This sudden influx of funds likely triggered the scammer to act, illustrating a common tactic in phishing approval attacks: waiting for the victim’s wallet to accumulate significant value before draining it [2].

The delayed nature of the theft highlights the subtle yet dangerous risks associated with token approvals in decentralized finance (DeFi) ecosystems. Many users are unaware that granting a token approval to a smart contract or dApp allows the address continuous access to their funds until the permission is manually revoked. In this case, the victim likely never realized that the approval remained active, making the eventual theft both swift and largely undetected [1].

Such attacks underscore the need for users to proactively manage their token approvals. Tools like Etherscan’s Token Approval Checker allow Ethereum users to review and revoke unnecessary permissions; however, each revocation requires a gas fee, which can be a deterrent for some. Analysts emphasize that the onus is on users to remain vigilant and regularly audit their blockchain interactions [2].

The incident also aligns with broader trends in crypto-related fraud. In July alone, bad actors stole over $142 million in 17 separate attacks, with one of the most significant losses attributed to the exploitation of crypto exchange CoinDCX. These figures highlight the urgent need for both individual users and platform developers to strengthen security protocols and improve user education [2].

Scam Sniffer, the analytics platform that identified the theft, warned users to “regularly review and revoke old approvals” to avoid similar fates. As the DeFi space continues to expand, incidents like this serve as a stark reminder of the importance of wallet security and the potentially long-term consequences of a single overlooked approval [1].

Source:

[1] Cointelegraph. https://cointelegraph.com/news/crypto-victim-loses-908k-in-sophisticated-phishing-attack

[2] Coinfomania. https://coinfomania.com/908k-stolen-in-phishing-tied-to-458-day-old-wallet-approval/