An unknown crypto investor lost digital assets worth $25.6 million in just 15 minutes: according to Scam Sniffer, their cryptocurrency wallet was targeted in a direct phishing attack.
What Assets Did the Scammers Withdraw
Scam Sniffer analysts believe the attack was not random but prepared for a specific victim. The attackers gained access to permissions and quickly withdrew several large positions from the wallets.
According to Scam Sniffer, four major positions were involved:
- aWBTC — $6.3 million;
- DAI — $5.1 million;
- Wrapped Bitcoin — $4.7 million;
- ETH — $2.6 million.
After the theft, the criminals began exchanging the stolen cryptocurrency through decentralized exchanges. In particular, aWBTC and WBTC were converted into 20 million DAI and 3,000 ETH. The funds were then distributed across four crypto addresses. According to Scam Sniffer, as of publication, the coins had not moved from those addresses.
This Crypto Investor Has Already Faced a Major Theft
The situation is notable because the same crypto investor had previously lost a large sum due to phishing. In September 2023, they approved a transaction on a fraudulent site linked to the Inferno Drainer group and lost $24.23 million.
At that time, 4,851 rETH and 9,579 stETH were stolen. Later, the owner recovered most of the funds — about 90% of the stolen amount.
Why Phishing Permissions Remain Dangerous
In such cases, the key risk is often not the hacking of the blockchain itself, but the permissions the user grants to a malicious smart contract. But other factors are also dangerous for crypto investors: sharp volatility, transfer errors, service failures, platform hacks, liquidity problems, and regulatory restrictions. Risk reduction strategies include checking addresses and domains, limiting permissions for smart contracts, storing large sums outside of hot wallets, and regularly reviewing access rights.
Before signing a transaction, it is worth checking what rights the smart contract is receiving: sometimes one extra permission gives access to the entire token balance.
Even strong authentication does not replace checking what exactly the site or app is requesting. This is not about an authorization token for logging in, but about the right of a smart contract to manage funds at an address. Therefore, investing in digital assets requires diversification and risk management, especially given market volatility. In practice, this may mean spreading funds across different assets, wallets, and platforms, setting limits for a single transaction, using stop orders where available, and keeping records of all operations.
Previously, Scam Sniffer also reported a similar incident on the Ethereum network: another investor lost 999,999 USDT after signing a phishing transaction. They gave a fraudulent smart contract unlimited permission to withdraw USDT from their address.
What Does a Crypto Investor Do
A crypto investor buys and holds digital assets, hoping for price appreciation or income from working with blockchain services. Typically, they evaluate projects, choose coins and tokens, manage a portfolio, monitor risks, use crypto wallets, exchanges, and decentralized finance services.
Among well-known public crypto investors, Michael Saylor is often mentioned. Large Bitcoin holders can also include early miners, funds, and companies that keep digital assets on their balance sheets.
How Should a Beginner Approach Their First Purchase
It is better for beginners to start with basic preparation and a small amount that would not impact their personal finances if lost.
- Understand the differences between Bitcoin, Ethereum, stablecoins, and project tokens.
- Choose a platform with transparent fees, account protection, and a good reputation.
- Set up two-factor authentication and a separate crypto wallet.
- Make a first purchase with a small amount and test withdrawing funds.
- Record transactions, fees, and purchase and sale dates.
The wallet should be chosen for the task. Hot wallets are convenient for frequent transactions but depend more on the security of the device and apps. Cold wallets are better suited for long-term storage of large sums. It is safer to buy cryptocurrency on platforms with clear fees, withdrawal rules, account protection methods, and transaction verification procedures.
How to Evaluate Projects and Keep Risks Under Control
Before buying a crypto asset, investors usually look at the project idea, team, tokenomics, liquidity, community activity, smart contract history, and real use cases. Asset management is not just about one successful purchase: the portfolio should be reviewed, some profits fixed, limits set in advance, and wallet access regularly checked.
- A common mistake is investing all funds in one asset.
- It is risky to buy tokens just because of social media hype.
- You should not store your seed phrase in the cloud or send it to anyone.
- It is risky to sign transactions without checking permissions.
- Psychological traps include FOMO, greed, panic during price drops, and trying to quickly recover after a loss.
In Russia, crypto investors need to consider the legal status of digital assets, tax consequences of transactions, and possible restrictions on settlements. For personal accounting, it is useful to keep a record of trades, withdrawals, transfers, and fees. The market is seeing growing interest in stablecoins, DeFi services, storage infrastructure, and risk management tools, but volatility, phishing, and regulatory uncertainty remain alongside opportunities.
For users from different countries, including Russia, such cases serve as a reminder: cryptocurrency can be a valuable tool, but every asset in a personal or corporate portfolio needs to be monitored. Different tools offer various opportunities:
- Bitcoin;
- Ethereum;
- Stablecoins;
- Decentralized finance services.
But a mistake when signing a transaction can wipe out even a large portfolio in a matter of minutes.
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