The Costly Consequences of Ignoring Old Approvals in Crypto Wallets
Understanding the Incident
Imagine waking up to seek out nearly $1 million in USDC gone out of your crypto wallet. That’s exactly what happened to 1 unlucky user who was scammed out of $908,551 in USD Coin. This wasn’t only a random hack—it was a classy wallet-draining scam that had been within the making for over 15 months.
The Long Con
Back on April 30, 2024, the victim unknowingly approved a malicious smart contract. It’s suspected that this happened through a fake airdrop or a phishing site masquerading as a real platform. Fast forward to August 2, 2025, and the scammer finally made their move, exploiting this old approval to empty the wallet.
The Mechanics of the Attack
The attack hinged on an ERC-20 approval, which silently allowed access to a scammer-controlled wallet, identified by the address “0x67E5Ae” and linked to the name pink-drainer.eth. This approval enabled token transfers without requiring any further confirmation from the user—a loophole the scammer patiently waited to use.
Scam Sniffer’s Warning
Scam Sniffer, the vigilant watchdog that flagged this incident, highlighted the astonishing 458-day delay between the initial approval and the eventual theft. Their advice? Regularly review and revoke old approvals to guard your wallet. The compromised wallet had previously shown only minor activity, which likely helped it evade detection until it was too late.
The Trigger
Everything modified on July 2, when the victim transferred $762,397 USDC from MetaMask to a brand new wallet. Just ten minutes later, they added one other $146,154 from a Kraken account. These public on-chain movements likely caught the scammer’s attention.
Instead of immediately pouncing, the scammer waited one other month, possibly to make sure there have been no reversals or additional deposits. Finally, at 4:57 a.m. UTC on August 2, the scammer struck, transferring the stolen funds to a malicious address labeled Fake_Phishing322880.
Scams Are Evolving
Crypto scams have gotten more sophisticated by the day. From AI-generated deepfakes of Ripple execs to fake YouTube channels promoting bogus XRP giveaways, scammers are leveraging cutting-edge technology to deceive. The recent resurfacing of a large 16-billion-record credential leak has only increased the risks.
Even seasoned users aren’t immune. In one instance, a cybersecurity expert fell victim to a phishing scam that used fake emails, spoofed Coinbase calls, and coordinated social engineering tactics.
A Final Word of Caution
The lesson here is evident: old approvals don’t expire, and attackers actually don’t forget. Regularly reviewing and revoking approvals ought to be a regular practice for anyone involved within the crypto space. Stay vigilant and protect your assets.
Image Credit: ambcrypto.com
