- A trader lost $119K in WBTC through a phishing scam.
- The scam used the “increaseApproval” method.
- No major liquidity or market impacts were reported.
A cryptocurrency trader lost $119,044 in Wrapped Bitcoin after being targeted by a phishing attack exploiting the “increaseApproval” function, as revealed by on-chain monitoring tools.
The incident underscores phishing threats in DeFi, impacting trust while showing no immediate market disruptions for Wrapped Bitcoin.
A trader suffered a loss of $119,044 in Wrapped Bitcoin through an increaseApproval phishing transaction. Scam Sniffer, a specialized platform, detected the attack, although no official comments were made. This incident highlighted the vulnerability of wrapped assets in DeFi, as on-chain monitoring tools reported the attack.
The trader’s identity remains unknown. There were no responses from involved projects like BitGo or MetaMask.
Immediate effects were isolated to the affected account, with no widespread liquidity disruptions in major DeFi protocols. This incident is part of a broader trend that didn’t impact the total value locked in WBTC-related pools.
The phishing attack targeted ERC-20 tokens, highlighting the need for increased security in DeFi protocols. Wrapped assets like ETH, USDT, and DAI frequently face similar threats, relying on social engineering techniques.
Security Specialists, SlowMist, “AI-generated phishing campaigns and token approval scams have become the predominant threat vector of 2025, with total phishing-related losses exceeding $340 million in the first half of the year”: SlowMist Report
The attack signifies an escalating trend of phishing incidents within DeFi. Phishing campaigns have caused losses exceeding $340 million this year, exemplifying a pressing security challenge in the cryptocurrency sector.
Security experts note a growing reliance on AI-generated phishing techniques, exploiting token approvals. Given the history of such incidents, experts caution heightened vigilance against social engineering threats across major DeFi platforms.
