A crypto trader fell victim to a phishing token approval scam and lost nearly $1 million. This incident highlights the ongoing threat of social engineering attacks on cryptocurrency users.
On Wednesday, an Ethereum user suffered significant financial losses after approving a fraudulent transaction through a phishing token. The attack resulted in the loss of 999,999 USDt (USDT), totaling nearly $1 million. This incident underscores the persistent danger posed by onchain scams and highlights how scammers can exploit users’ trust to drain their wallets.
According to onchain data from Etherscan, the attackers initially attempted to withdraw a full $1 million via multicalls but were unsuccessful due to insufficient funds in the victim's wallet. They then managed to extract the exact remaining balance through follow-up transactions, demonstrating the cunning and persistence of these cybercriminals.
Phishing token approval scams have become a common tactic among scammers. In 2025, social engineering attacks via phishing led to $723 million in losses across 248 incidents, as reported by CertiK. These attackers trick users into approving malicious transactions under the guise of minor tasks, allowing them access to funds.
The incident is a stark reminder for crypto traders and enthusiasts to be vigilant when signing any transaction requests. Scammers often reuse similar wallets and exploit legitimate contract features to create convincing phishing attempts. Renato Bastos from Chainalysis emphasized that each report exposes a wider network of compromised accounts, making it crucial for users to double-check all signature requests.
Beyond token approval scams, address poisoning remains another threat vector used by scammers. This involves creating addresses similar to legitimate ones and sending small amounts of funds to them, tricking users into mistakenly sending their cryptocurrency there instead. To combat this, popular wallets like MetaMask have introduced features such as live address poisoning detection.
This phishing incident is part of a broader trend in the crypto industry where onchain scams continue to pose significant risks. The $14 billion pulled through onchain scams in 2025, reported by Chainalysis, illustrates just how pervasive these attacks are becoming. As more users enter the market, it’s essential for them to remain aware and cautious.
Traders should stay informed about ongoing security measures and tools that can help protect their assets from phishing attempts. Tools like scam detection extensions and thorough verification of transaction requests can significantly reduce the risk of such incidents.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.