Cryptocurrency User Loses $3.05 Million in Sophisticated Phishing Attack

A cryptocurrency user has reportedly lost $3.05 million in a highly sophisticated phishing attack after unknowingly signing a malicious blockchain transaction. The incident, reported on July 27, 2025, involves the draining of Aave-wrapped USDT (aEthUSDT) from the victim's wallet following a deceptive on-chain approval [1]. The attack did not require direct access to the wallet, underscoring the evolving and increasingly subtle tactics employed by cybercriminals [1].

According to on-chain analysis by Scam Sniffer, the victim’s wallet address, 0x2d98…6695, interacted with a phishing contract that allowed attackers to execute a single harmful transaction, resulting in the unauthorized transfer of assets [1]. The attack leveraged what is known as an EIP-7702 upgraded address, a technique previously used in smaller-scale phishing incidents reported by the same security platform [1]. These tactics often involve disguising malicious transfers as legitimate Uniswap swap operations, thereby reducing suspicion [1].

This case is part of a troubling trend in the crypto space, with reports indicating that over $4.6 billion has been lost to scams in 2024 alone, according to a recent Bitget report [1]. Additionally, AI-enabled fraud now accounts for nearly 40% of high-value theft events, demonstrating the growing sophistication of cybercriminal infrastructure [1].

Security experts warn that phishing attacks often simulate support communications, wallet prompts, or investment opportunities to lure users into approving fraudulent transactions [1]. In this instance, the victim was likely tricked through a deceptive dApp or a malicious social media link, leading them to sign a transaction without realizing the permanent access it granted to the scammer [1].

Despite the involvement of security platforms like Lookonchain, PeckShield, and Scam Sniffer, who identified the transaction shortly after it occurred, the funds were quickly moved through a series of obfuscation techniques, making recovery virtually impossible [1]. The incident highlights the limitations of current detection systems, as well as the speed with which cybercriminals can act once a vulnerability is exploited [1].

Industry watchdogs, including Bitget, SlowMist, and Elliptic, have joined forces to combat such fraud through initiatives like the $300 million Anti-Scam Hub [1]. However, experts emphasize that user vigilance remains critical. Users are advised to routinely review and revoke old transaction approvals, avoid interacting with suspicious dApps, and store large assets in offline wallets [1].

The event also highlights the risks associated with lingering permissions. A separate case revealed that a victim had lost $908,000 from a phishing scam involving an approval signed 458 days earlier [1]. This reinforces the importance of continuous wallet permission audits and the need for users to stay informed about their digital asset security practices.

Source: [1] (https://bitcointalk.org/index.php?topic=5552819.0)