Be Vigilant in 2021: Revoke Smart Contract Approvals to Protect Funds

• A Reddit user has warned of the potential dangers of unchecked smart contracts, advising the community to revoke approvals on a regular basis.
• Ice phishing scams have been successful in the past, with one such elaborate month-long scam involving an offering from a fake film studio leading to 14 Bored Ape Yacht Club (BAYC) NFTs stolen from a single wallet.
• Even known “good-behaving” contracts should be revoked as hackers could find exploits to pilfer funds from connected wallets.

Crypto investors have been warned to be extra vigilant in the New Year as the threat of unchecked smart contracts can lead to their funds being stolen. A Reddit user has advised crypto holders to check and revoke smart contract approvals on a regular basis in order to ensure their funds remain safe.

Smart contracts have been used to facilitate the transfer of digital assets since the inception of the blockchain industry. However, due to the complexity of smart contract code, it is possible for attackers to hijack funds when users fail to revoke approval. This was seen in the summer of 2022 when a month-long scam involving a fake film studio led to the theft of 14 Bored Ape Yacht Club (BAYC) NFTs from a single wallet.

In order to prevent such attacks, crypto investors must be proactive in revoking approvals for all smart contracts, including ones that appear to be “good-behaving”. This is because hackers can find exploits to pilfer funds from connected wallets.

The Reddit user 4cademy, who posted the warning to the r/Cryptocurrency subreddit, also noted that they had approved a slew of smart contracts over a two-year period and „thought it was time to check my approved smart contracts.“ They found „nearly all“ of their approvals were for „unlimited amounts,“ which spurred them to revoke approvals for all smart contracts in their wallet as it was „better safe than sorry.“

The advice to check and revoke smart contract approvals is especially pertinent for the new year as the 10 largest exploits in 2022 saw around $2.1 billion stolen mostly from DeFi protocols and cross-chain bridges where attackers found vulnerabilities in smart contracts.

Thus, crypto investors should be aware of the potential risks associated with unchecked smart contracts and take the necessary steps to protect their funds. By regularly revoking approvals, crypto holders can rest assured that their funds remain safe and secure.

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