Ethereum phishing scam drains nearly $1M USDT

A user lost nearly $1M in USDT after signing a phishing token approval on Ethereum. Experts urge users to verify signature requests and review token approvals to avoid such scams.

A crypto user lost almost $1 million in USDT after unknowingly signing a phishing token approval on Ethereum. The attacker first attempted to withdraw $1 million, but the transaction failed due to the wallet being $631 short. After recalculating, the attacker successfully drained 999,999 USDT just 36 seconds later. This loss was not the result of a protocol exploit or a leaked private key, but rather the user granting token approval to a malicious actor. Approval phishing, where users are tricked into signing permissions that allow attackers to move funds, has caused over $1 billion in losses since 2021. Stablecoins like USDT are frequent targets because of their liquidity and dollar value. Security experts recommend users carefully check all signature requests and regularly review token approvals. Tools such as Revoke.cash can help audit and revoke risky permissions.