On Wednesday, blockchain analytics firm Lookonchain revealed that an investor fell victim to a phishing scam. The attacker lured the victim into signing a malicious transaction, draining $3.05 million in USDT from wallet address “0x2d9.” This wasn’t some obscure bug or hack. It was human error—one click, no take-backs.
The investor likely did what many people do when transferring funds: check the first few and last few characters of the wallet address, assuming the middle part is fine. But that middle part is exactly where the malicious contract hides. And most wallet UIs don’t even show it by default.
That’s how sophisticated these scams have become. They look legitimate at a glance, just enough to catch even seasoned traders off-guard.
What’s a crypto phishing scam?
Think of it as classic phishing, but with higher stakes. These attacks usually involve social engineering—fraudulent links or messages that trick users into handing over their credentials or signing malicious smart contracts. Unlike traditional banking fraud, there’s no fraud desk or chargeback option in DeFi. Once you click and sign, the money’s gone.
And this isn’t a one-off. Just days earlier, another investor lost $900,000 to a phishing scam—458 days after signing a malicious approval transaction. That wallet sat quietly, waiting for the right moment to strike. No bells, no alarms.
The $71 million twist
Back in May 2024, a victim lost $71 million in a wallet poisoning scam. In a bizarre twist, the scammer returned the entire amount two weeks later, after global investigators traced the activity to a potential Hong Kong IP address and publicly ramped up the pressure.
Don’t count on that kind of miracle, though. Most bad actors won’t fold.
The bigger issue: False sense of security
The common thread in all these incidents? A false sense of security. People think checking just part of an address or trusting a slick interface is enough. But smart contracts don’t care how the UI looks. They execute code. And the blockchain, once it confirms a transaction, does not do refunds.
This is why crypto self-custody is both a superpower and a trap. You’re your own bank—but also your own last line of defense.
So, how do you stay safe?
- Never sign a transaction you don’t understand. That sounds obvious, but people still do it.
- Verify every single character of a wallet or contract address. Don’t just rely on the beginning and end.
- Don’t interact with links or dApps you find on social media or group chats without checking the source.
- Use wallets and interfaces that show you full contract details.
- Revoke past approvals regularly using tools like Revoke.cash or Etherscan’s token approval checker.
Web3 doesn’t forgive mistakes. The tech is powerful, but human error remains the weakest link. If you’re managing large sums in crypto and not taking contract approvals, wallet hygiene, and basic verification seriously, you’re walking a tightrope without a net.
One click cost this investor $3 million. Let it not cost you yours.
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