Ethereum Phishing Nightmare: Trader Loses $1M After Signing Malicious Token Approval

A devastating security breach on the Ethereum network has left a trader nearly $1 million poorer after falling victim to a sophisticated phishing token approval scam. According to data from Scam Sniffer, the attacker utilized advanced scripts to bypass initial hurdles, highlighting how approval phishing remains a primary attack vector for onchain scammers targeting high-value wallets.

This massive loss follows a grim trend in the crypto industry, which has already seen $366 million in phishing-related losses in the first half of this year. The precision of the attack—where the script recalculated and drained the exact remaining balance after an initial failed attempt—serves as a stark warning about the evolving capabilities of automated theft in the decentralized finance space.

A Scam Sniffer alert revealed that a victim lost 999,999 USDt (USDT) to an Ethereum phishing token approval scam. Scammers initially attempted to drain a rounded $1 million via multicalls but failed due to insufficient funds. However, seconds later, the script recalculated and successfully pulled the exact remaining balance in follow-up transfers. The incident underscores the extreme danger of granting token approvals to unverified smart contracts.