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A cryptocurrency user lost nearly $1 million after approving a malicious Ethereum transaction that allowed attackers to empty almost the entire wallet balance. Blockchain security platform Scam Sniffer reported that the victim lost 999,999 Tether (USDT) after signing a fraudulent token approval request on Wednesday.
On-chain records showed the attackers first attempted to transfer a rounded $1 million, but the transaction failed since the wallet held slightly less. Moments later, the attackers recalculated the available balance and successfully withdrew every remaining token. Meanwhile, Ethereum treasury company BitMine disclosed that it now controls more than 5.74 million ETH, placing it close to its stated goal of owning 5% of Ethereum’s total token supply.
Scam Sniffer said the attackers relied on a phishing approval request rather than stealing private keys. The malicious approval granted permission to move the victim's tokens without requiring another signature. According to the platform, the attackers initially failed when they tried withdrawing as much as $1 million through multicall transactions. Soon afterward, their script recalculated the balance and transferred the exact amount left in the wallet.
Security researchers continue to identify approval phishing as one of the most common social engineering threats in crypto. Victims often believe they are confirming routine transactions while unknowingly granting unlimited spending permissions.
According to blockchain security firm CertiK, phishing scams caused $723 million in losses across 248 incidents during 2025. In those cases, attackers convinced users to approve malicious token permissions that later enabled unauthorized transfers.
Earlier this month, another crypto holder reportedly lost about $1.65 million after connecting to a fake exchange and signing a malicious smart contract. Researcher Ryan Coleman said the approval gave attackers unlimited wallet access, allowing an automated sweeper to drain the assets.
Besides phishing attacks, researchers recently reported another major on-chain loss involving transaction routing. A trader lost nearly $2 million after a decentralized exchange routed an Ether swap through a low-liquidity pool.
GoPlus Security said the incident resulted from transaction routing instead of phishing. The routing allowed a same-block arbitrage trade to capture most of the transaction's value.
Following the incident, Scam Sniffer advised users to review every signature request carefully. The platform also recommended avoiding rushed approvals and using scam detection tools or browser extensions before signing wallet transactions.
Read More: Why Ethereum Could Fall Further After a 22% Monthly Decline
At the same time, BitMine disclosed that it holds 5,742,237 ETH, representing about 4.8% of Ethereum's 120.7 million token supply. The company now sits only 0.2 percentage points below its stated ownership target.
The company reported total crypto assets, cash, marketable securities, and strategic holdings worth $11.1 billion as of June 28. It also said 4,879,157 ETH remained staked as of July 5, representing about 85% of its Ethereum holdings.
Based on an ETH price of $1,800, BitMine valued its staked assets at approximately $8.8 billion. Furthermore, the company projected current annualized staking revenue of $235 million and estimated annual rewards of $277 million if all holdings remain fully staked through MAVAN and its staking partners.
CryptoSlate's Ethereum market data listed Ethereum's total supply at about 120.68 million ETH and its market capitalization near $209 billion on July 6. Consequently, BitMine's growing treasury has entered the broader discussion surrounding exchange liquidity, institutional treasury demand, staking participation, and large-holder activity.
An Ethereum phishing scam drained nearly $1 million after a victim approved a malicious transaction, while separate onchain losses exposed transaction routing risks. Meanwhile, BitMine expanded its Ethereum treasury to 5.74 million ETH, bringing its holdings close to 5% of the network's total supply. Users should carefully verify every wallet approval before signing.
