USDC Wallet Drained of $908K in 458-Day ERC-20 Phishing Scam
On August 2, 2024, a crypto user lost $908,551 in USDC after falling victim to an ERC-20 phishing approval scam. In April 2023, the user unknowingly granted token approval via a fake airdrop site, giving the attacker ongoing wallet access. The scammer waited 458 days until two large USDC deposits arrived in July 2024, then executed the drain. These delayed-strike tactics are common in ERC-20 phishing scams, as attackers monitor for significant inflows before acting. Security experts recommend regular audits of ERC-20 token approvals and the use of tools like Etherscan’s Token Approval Checker to revoke unneeded permissions. Although revocations incur gas fees, timely action can prevent major losses. In July 2024 alone, high-profile hacks—including the CoinDCX exploit—saw over $142 million stolen across the market, underscoring the persistent threat. Traders should prioritize wallet security, monitor token approvals, and adopt proactive risk management to safeguard funds.
Neutral
As USDC is a stablecoin pegged to the US dollar, draining funds from a single wallet has minimal effect on its market price. While the ERC-20 phishing scam highlights serious security risks that may encourage traders to audit token approvals and incur additional gas fees, these measures are unlikely to shift USDC’s price. Market sentiment around wallet security may tighten, but USDC’s stability and liquidity should remain intact, resulting in a neutral price impact.