A shocking $1.39 million in crypto was lost in a sophisticated phishing attack that targeted a PEPE token holder, exploiting the Uniswap Permit2 feature. This devastating incident serves as a major warning to all DeFi users. Here's what you need to know to keep your assets safe.
đŽ What Happened?
The victim unknowingly signed a malicious Permit2 transaction, falling into a phishing trap reported by cybersecurity firm ScamSniffer. In just under an hour, tokens like Pepe (PEPE), Microstrategy (MSTR), and Apu (APU) were drained from the victim's wallet and moved to a new address, never to be recovered.
â ïž What Is Uniswap Permit2?
Originally designed to simplify token approvals and reduce gas fees, Uniswapâs Permit2 feature has become a hot target for scammers. The off-chain approval process offers attackers a sneaky backdoor to user funds, exploiting the system through malicious off-chain signatures.
đ« How Do Permit2 Phishing Attacks Work?
Attackers use phishing websites or fake dApp interfaces to trick users into signing what looks like a harmless transaction.
The signed off-chain signature gives attackers permission to move assets, using the Permit and Transfer From functions.
Because the approval happens off-chain, users arenât alerted to any unusual activityâuntil itâs too late.
đ Why Is This Dangerous?
The off-chain nature of Permit2 approvals makes it hard for users to spot malicious activity. By default, Permit2 allows access to your entire token balance, unless you manually restrict itâa step many users miss.
đ The Bigger Picture
This attack is just one in a growing wave of Permit2 phishing scams. Already this month, victims have lost over $38 million in similar schemes, with a CertiK report showing that phishing and private key compromises are responsible for $343 million in crypto losses.
đ How to Stay Safe in DeFi:
Double-check permissions before signing any off-chain transaction.
Use secure wallets that offer extra security layers.
Stay informed on the latest phishing tactics and only interact with verified platforms.
đ Want to Keep Your Crypto Safe?
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