Crypto User Loses $3.05M in Phishing Attack

Crypto User Loses $3.05M in Phishing Attack

A crypto user lost $3.05 million through a sophisticated phishing attack involving a malicious EIP-7702 contract, as reported by blockchain analytics account Lookonchain on August 6, 2025.

This incident highlights vulnerabilities in DeFi security and the need for vigilance in transaction approvals, impacting user trust and potentially affecting similar crypto assets and platforms.

A crypto user fell victim to a sophisticated phishing attack losing $3.05 million primarily in USDT. Lookonchain , a blockchain analytics platform, first reported the incident on X, highlighting the complex nature of the attack.

The attack utilized a malicious EIP-7702 contract. The victim unknowingly approved transactions allowing attackers access to the funds. Lookonchain and Scam Sniffer provided analysis of the attack, stressing the need for increased caution.

The immediate effect highlighted the vulnerability of DeFi wallets to phishing scams. Users were advised to double-check transactions before approving. The crypto community responded with calls for enhanced awareness and security measures against similar threats.

Financially, the incident saw the loss of $3.05M in USDT. The funds were rapidly obfuscated and proved impossible to recover. Crypto analysts emphasized avoiding unintended approvals in all decentralized finance transactions.

The loss adds to a growing concern of phishing risks in the crypto industry, with $4.6 billion lost in scams last year. Long-lived token approval grants were flagged as high-risk by security analysts.

Historical examples of similar attacks showed that malicious approvals led to large-scale losses. Regulatory warnings on DeFi self-custody risks have emerged, though specific guidance on EIP-7702 attacks remain limited.

“Someone fell victim to a phishing attack, signed a malicious transfer, and lost 3.05M $USDT! Stay alert, stay safe. One wrong click can drain your wallet. Never sign a transaction you don’t fully understand. Double-check the URL, double-check all signature requests.” — Lookonchain, Blockchain Analytics Expert