One Fake Approval Was Enough to Steal $999,999 in USDT from an Ethereum Wallet: Latest Phishing Attack Shows Why Checking Every Token Approval Matters Before Signing Any Transaction
A crypto user lost $999,999 after one fake approval on the Ethereum network in a major USDT phishing attack. Blockchain records show the attacker never stole the wallet’s private keys. Instead, the victim signed a malicious token approval that allowed the attacker to move the USDT from the wallet.
Data from Ethereum shows the stolen funds moved via three transactions in blocks 25489460 and 25489463. The transfers happened only minutes after the victim approved the request. The wallet owner has not been identified, and no other personal details have become public.
How the Attack Happened
This attack shows how dangerous token approval scams have become. ATokenapproval ggrantsa smart contract permission to use tokens from a wallet. Many users choose unlimited approvals for convenience during transactions. Those permissions stay active until someone removes them. If a fake contract receives that approval, attackers can take all approved funds without asking again.
Reports show the attacker first tried to withdraw 1,000,000 USDT. The attempt failed because the wallet held a slightly smaller balance. Only 36 seconds later, the attack script checked the balance again and successfully transferred 999,999 USDT. The attacker also used multicall technology to cexecuteseveral actions in oa singletransaction and quickly split the stolen funds iacrossthree dransfers.
Similar Phishing Scams Are Increasing
This incident shows that an old token approval can become a serious security risk. Private keys stayed safe during this attack, but the approval alone gave the attacker everything needed to steal the funds. Many wallet users forget about approvals after using decentralized finance platforms, leaving those permissions active for months.
Several similar attacks have appeared this year. A fake Uniswap website recently stole around $400,000 after users approved a malicious contract. Another phishing scam targeted a HyperSwap user through a fake airdrop page and emptied the wallet within seconds. Earlier this year, another campaign used fake two-factor verification requests to trick users into signing harmful approvals.
How Users Can Stay Protected
Security researchers say phishing scams continue to grow across the crypto industry. More than $366 million has already disappeared via phishing attacks in the first half of 2026. Earlier reports also showed crypto users lost around $723 million across 248 security incidents in 2025. Many of those attacks involved fake token approvals instead of direct wallet hacks.
Security experts advise crypto holders to read every approval request before signing it. Regularly checking and removing unused token approvals can lower the risk of future attacks. Trusted security tools can also help detect suspicious contracts before any approval takes place. This latest USDT phishing attack proves that one careless signature can lead to the loss of an entire wallet balance.
Disclaimer : Crypto News India does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.
