Safe multi-signature wallet exploit raises alarm after $3 million phishing theft

Key Points

• Safe multi-signature wallet exploit led to a $3 million loss through a phishing scheme

• Attackers used a fake Etherscan-verified contract and disguised approvals

• Request Finance confirmed one affected user and patched the issue

• Blockchain security experts warn about refined phishing techniques

Safe multi-signature wallet exploit has emerged as a serious concern after an unidentified investor lost more than $3 million.

The incident shows how attackers refine phishing tactics to bypass user scrutiny and exploit trusted platforms.

Investigators revealed that the victim’s funds, held in a 2-of-4 Safe multi-signature wallet, were drained in two steps. The attacker disguised abnormal authorizations inside routine approvals, making them almost impossible to notice.

The malicious contract mirrored the first and last characters of the real address, which added to the deception. Blockchain security analysts confirmed that the attacker prepared the ground two weeks earlier by deploying a fake Etherscan-verified contract. This tactic gave the impression of legitimacy while enabling hidden exploit functions.

How the phishing unfolded

According to blockchain investigator ZachXBT, the victim’s wallet lost $3.047 million in USDC. The attacker immediately swapped the funds into Ethereum, then routed them through Tornado Cash to obscure their path.

SlowMist founder Yu Xian explained that the exploit used the Safe Multi Send mechanism. This allowed the attacker to bury abnormal approvals inside what looked like a regular authorization flow. In his view, the exploit was especially dangerous because it mimicked the exact operations of legitimate transfers.

Request Finance later acknowledged that the exploit involved a fake version of its Batch Payment contract. Only one customer was affected, and the company stressed that it patched the vulnerability immediately. Still, blockchain security experts argue the case highlights broader risks across the ecosystem.

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Phishing methods grow more advanced

This new ‘sophisticated’ phishing exploit relied on patience and precision. Scam Sniffer reported that the fake contract was Etherscan-verified, complete with multiple batch payment functions. That detail made it look like a real utility, convincing users it was safe.

The attacker also took advantage of the Request Finance app interface. By using a familiar tool, the approval request seemed trustworthy, lowering the victim’s guard. From my standpoint, this combination of verification, interface trust, and address similarity shows that wallet exploit strategies are evolving fast.

Lessons for crypto investors

The multi-sig wallet security hack raises important questions for every crypto user. If experienced investors with multi-signature wallets are vulnerable, average users face even higher risks. The reliance on Etherscan verification as a trust signal is now challenged.

Scam Sniffer warned that future incidents may stem from malware, browser extension modifications, DNS hijacks, or compromised app front-ends. Each represents a weak link in the chain that attackers can exploit. Blockchain security requires more user awareness and stricter transaction verification practices.

Safe multi-signature wallet exploit as a wake-up call

This safe multi-signature wallet exploit is a clear warning for investors and developers. Multi-sig wallets have been promoted as safer options, but sophisticated phishing attacks now target them directly. Wallet exploit incidents like this prove that no layer is immune to human error or deception.

Crypto users should adopt best practices like double-checking every approval, avoiding reliance on visual address checks, and limiting app permissions. Developers must also ensure their smart contracts cannot be cloned in ways that appear legitimate.

The case underlines the urgent need for improved blockchain security standards. Without stronger defenses, attackers will continue refining phishing techniques that outpace user awareness and trust signals.