A recent phishing attack led to a $3.05 million loss for a crypto user, underscoring the risks associated with fraudulent transaction approvals in the DeFi space.
Overview of the Incident
A crypto user suffered a $3.05 million loss through a sophisticated phishing attack involving a malicious EIP-7702 contract, as reported by blockchain analytics platform Lookonchain on August 6, 2025. The incident highlighted vulnerabilities in DeFi security and the need for caution in transaction approvals, which may impact user trust.
Community Response
The crypto community responded to the incident by calling for increased vigilance and security measures against phishing threats. Analysis from Lookonchain and Scam Sniffer emphasized the need to double-check transactions before approving them.
General Security Recommendations
In light of the incident, users are advised to double-check all transactions before approval. Given that $4.6 billion was lost to scams last year, caution in DeFi is critical. Security analysts highlight the risks of long-lived token approvals and recommend avoiding unintended approvals in any transactions.
The loss of $3.05 million due to this incident brings renewed attention to the vulnerabilities in DeFi and the vital need to raise awareness about phishing in the crypto space, which is essential for user protection.
