A sophisticated crypto scam has shaken investors, as a user lost over $908,000 in USD Coin (USDC) in a delayed wallet-draining attack. The theft occurred on August 2, 2025, but traces back to a seemingly harmless approval the victim gave 458 days earlier—on April 30, 2024. The user had unknowingly signed a malicious ERC-20 token approval transaction, granting future access to a scammer.
On-chain analysis revealed that the scammer patiently monitored the wallet for months before finally initiating the theft—once a substantial balance appeared. The attacker transferred the funds to a suspicious address identified as “pink-drainer.eth,” well-known in scam monitoring circles.
The Attack Unfolds: From Dormant Wallet to Drained Funds
The targeted wallet had shown minimal activity for more than a year, likely helping it escape detection. But on July 2, 2025, the user transferred $762,397 from a MetaMask wallet, followed by another $146,154 from a Kraken account. These transactions apparently caught the scammer’s attention, who waited another month before striking.
At 4:57 AM UTC on August 2, the scammer drained the entire amount. Investigators say the attacker had been closely watching the wallet, looking for the ideal moment to maximize their haul without triggering alarms.
Community Concerns and Calls for Action
The breach has raised urgent concerns about wallet security, especially among those active in decentralized finance. Scam Sniffer, a leading crypto threat intelligence firm, emphasized the need for users to regularly check token approvals and revoke unnecessary ones. Tools like Etherscan’s Token Approval Checker have been recommended to monitor and cancel lingering permissions—though doing so incurs gas fees.
The case is one of at least 17 major crypto attacks reported in July 2025 alone, where total losses exceeded $142 million. CoinDCX was reportedly one of the hardest-hit platforms. Authorities and crypto security firms warn that many users remain vulnerable to phishing approval attacks and dormant permissions that scammers exploit months later.
Investor Reactions and Security Measures
The scam has deepened mistrust in crypto security. Many investors are calling for better safeguards, more intuitive interfaces for approval management, and real-time scam alerts. Adding to the anxiety is the fact that the scammer remains unidentified and at large.
Security researchers are urging users to:
- Regularly review token approvals.
- Avoid signing unknown transactions.
- Use trusted platforms for airdrops and token swaps.
- Revoke old permissions even if no recent scam is suspected.
This case underscores a harsh reality in decentralized finance: even a single careless click—made over a year ago—can leave wallets exposed long after the user forgets about it.