User Loses $1.08 Million in Aave-Wrapped Ethereum Due to Phishing Attack
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 03 2026- Loss Overview: A user lost approximately $1.08 million in Aave-wrapped Ethereum due to a phishing attack, highlighting the vulnerability of crypto asset security and potentially diminishing user trust in the platform.
- Attack Methodology: The victim signed a malicious 'permit' signature, allowing attackers to spend assets without triggering on-chain transactions, reflecting the increasing sophistication of phishing tactics.
- Security Trends: Although crypto phishing losses dropped by 83% in 2025, from $494 million to $84 million, high-value holders remain prime targets for such attacks, indicating persistent security risks.
- Personal Safety Risks: In contrast to phishing, the frequency of '$5 wrench attacks' has risen, with around 60 reported in 2025, underscoring the escalating physical security threats faced by crypto asset holders and the need for enhanced protective measures.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
