According to cybersecurity firm ScamSniffer, the victim unwittingly signed an off-chain Permit2 signature, giving the attacker full access to their wallet. Within an hour, the stolen assets — including PEPE, Microstrategy (MSTR), and Apu (APU) tokens — were transferred to a new wallet, with no time to recover them.
What is Uniswap Permit2?
Uniswap Permit2 was designed to streamline token approvals and save on gas fees by allowing off-chain approvals. However, this convenience has created a new vulnerability in the DeFi ecosystem, with attackers increasingly exploiting off-chain signature mechanisms to steal funds.
🚫 How did the attack work?
1. Phishing Website or Fake dApp: Attackers use fraudulent platforms to trick users into signing malicious off-chain signatures.
2. Invisible risk: Off-chain signatures appear harmless but allow attackers to perform both Authorize and Transfer From actions.
3. Wallet drained: Victims don't realize the danger until it's too late, as no suspicious activity appears on the chain until the funds are gone.
🔍 Why is this type of attack dangerous?
Single Point of Failure: An off-chain signature can grant full access to the wallet.
Full access by default: Unless explicitly limited, Permit2 approval typically applies to the entire token balance.
Growing Trend: Permit2-based phishing attacks are on the rise, taking even experienced DeFi users by surprise.
📊 A broader problem in DeFi
The attack is part of a larger wave of Permit2 scams impacting the cryptocurrency community. Over $38 million has been stolen through similar schemes in the past month alone. A CertiK report on Web3 security highlights phishing attacks and private key compromise as the leading causes of cryptocurrency losses, totaling $343 million this year.
🔐 How to protect your assets
Review permissions: Carefully review the permissions granted, especially for off-chain transactions.
Use a secure wallet: Choose a wallet with strong security features and multi-signature options.
Stay informed: Stay updated on the latest scam tactics and avoid interacting with unfamiliar links or websites.
👉 Follow us for constant security updates and practical tips on protecting your crypto assets. In the rapidly evolving DeFi space, staying one step ahead of attackers is essential to protecting your assets.
