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Crypto User Loses $908K After 458-Day-Old Wallet Approval Scam

Scammer Waits 458 Days to Steal $908K After Malicious Ethereum Token Approval; Experts Urge Wallet Permission Reviews

  • A crypto wallet user lost $908,551 after a scammer waited 458 days to exploit a prior approval transaction.
  • The initial breach came from a malicious ERC-20 token approval, possibly through a phishing site or fake airdrop.
  • The scammer used ongoing access to steal U.S. dollar stablecoins once a large balance entered the wallet.
  • Security experts urge regular reviews and revocations of token approvals to avoid similar attacks.
  • Over $142 million in crypto was stolen in July 2024 due to multiple major attacks on users and platforms.

A crypto investor lost $908,551 after a scammer exploited a past approval on the Ethereum network, waiting 458 days to withdraw funds from the compromised wallet. The theft happened on August 2, 2024, when the attacker accessed the victim’s USDC holdings after previously receiving ongoing approval to move tokens.

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Blockchain analysis revealed the scam began with an ERC-20 token approval—providing continuous access to a scammer-controlled address, “0x67E5Ae.” The approval was likely granted on April 30, 2023, through a phishing site or a fake airdrop. Experts at Scam Sniffer flagged the theft on social platform X, noting the funds were stolen in a single transaction: Etherscan transaction link.

For over a year, the compromised wallet saw little use, and held low funds, so the scammer did not act. This changed on July 2, 2024, when the owner transferred $762,397 into the wallet from MetaMask, followed ten minutes later by another $146,154 from a Kraken account. The attacker waited another month, likely monitoring for more deposits, before stealing the full amount.

This form of attack—often tied to phishing sites—lets scammers wait until large sums appear before draining the wallet. Scam Sniffer reminded users: “regularly review and revoke old approvals,” or risk losing assets. “Your wallet security matters,” the group said.

Ethereum users can review and remove token permissions using Etherscan’s Token Approval Checker, although each revocation requires a small network fee (called a gas fee). Data also showed that more than $142 million was lost across the crypto sector in July 2024 alone, with at least 17 major incidents reported. The largest event was a security breach at crypto exchange CoinDCX.

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For more on how similar scams operate, see Scam Sniffer’s coverage on X: Scam Sniffer on X.

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