Approval Phishing Nets Crypto Scammers Up to $17B in 2025 — "Just Approve This Transaction" Energy Hits Different

Crypto scam revenue could climb to as much as $17 billion from activity recorded in 2025 as investigators continue identifying illicit addresses linked to fraud networks, according to new findings from blockchain analytics firm Chainalysis. In a report published on June 17, Chainalysis said on-chain scams generated at least $14 billion in 2025, with the figure expected to rise as additional scam-linked wallets are attributed. The firm also found that the average payment sent to a scam address increased 253% year-over-year, while AI-enhanced scams were 4.5 times more profitable than those that did not use AI.

The findings were released as part of Chainalysis' latest research into approval phishing, a tactic commonly used in crypto investment scams to gain access to victims' wallets. According to Chainalysis, approval phishing tricks users into authorizing malicious smart contract permissions that allow attackers to drain funds from their wallets. Victims are often convinced they are approving a routine transaction, such as a token swap or transfer, when in reality the approval grants a scammer ongoing access to wallet assets, enabling funds to be moved at a later date without further authorization.

Chainalysis said approval phishing frequently forms part of broader investment scam operations involving social engineering, fake advisors, and coordinated attempts to move users from regulated exchanges into self-custody wallets. Investigators identified several recurring warning signs, including customers providing scripted explanations for transactions, sudden large crypto purchases by individuals with no prior digital asset activity, and victims being guided through transactions by supposed mentors who demand immediate action. The firm said approval phishing operations remain vulnerable because scammers often reuse the same wallets, spender contracts, and cash-out infrastructure across multiple victims.

The company highlighted several enforcement initiatives aimed at disrupting those networks. Operation Spincaster, launched in 2024, processed more than 7,000 investigative leads and helped authorities address approximately $162 million in losses linked to approval phishing schemes. Chainalysis said one potential victim was warned before losing a six-figure amount after investigators identified the scammer's wallet approvals in time. Chainalysis also pointed to Operation Atlantic, a joint effort involving agencies in the United Kingdom, Canada, and the United States, which identified more than 20,000 victims, froze over $12 million in suspected criminal proceeds, and traced an additional $45 million in stolen cryptocurrency connected to related schemes.