Public WiFi Risk: How a Routine Approval Led to a Crypto Wallet Loss

A crypto user known as “The Smart Ape” lost about $5,000 from a hot wallet during a short hotel stay. No phishing links were opened, and no fake sites were used. Instead, a chain of small missteps created the conditions for a delayed wallet drain. Security researchers say the case shows how everyday actions, both online and offline, can combine into a serious loss.

Open WiFi and Public Talk Expose Crypto Users to Attack

During the trip, the user connected a laptop to the hotel’s open WiFi network and continued regular crypto activity. Time was spent browsing Discord, checking X, and reviewing wallet balances. Nothing appeared out of the ordinary. What remained unseen was that open networks place all connected guests in a shared local environment, where traffic can be observed or altered.

An analysis conducted by the blockchain security firm Hacken found that attackers can exploit such networks without directly touching wallet software.

Dmytro Yasmanovych, cybersecurity compliance lead at Hacken, explained that open WiFi allows methods such as ARP spoofing, DNS manipulation, and rogue access points. These techniques can inject malicious JavaScript into legitimate websites. Even trusted DeFi interfaces may become unsafe once their execution environment is compromised.

Exposure increased later in the hotel lobby. During a phone call, the user openly discussed crypto holdings. That conversation provided valuable clues to anyone listening nearby. Once attackers knew the target was involved in crypto, guessing the likely wallet setup became easier. A common combination—Phantom used on the Solana network—stood out. The wallet provider itself was not breached.

Physical awareness remains a weak point for many crypto users. Bitcoin developer and security advocate Jameson Lopp has long warned that discussing holdings in public spaces attracts attention that can turn into targeted attacks.

Yasmanovych explained that many cyber attacks begin with observation rather than technical hacking. Public conversations about crypto can give attackers enough information to plan their timing, select tools, and decide how to approach a target.

Wallet Emptied After User Signs Permission on Unsecured Network

The decisive moment came during a token swap on a legitimate DeFi front end. A wallet request appeared and looked familiar. Instead of asking for a direct transfer, the prompt requested a permission approval. That approval granted ongoing access rather than moving funds immediately.

Such behavior fits a growing attack pattern known as approval abuse. Attackers do not rush to steal assets. Permissions are collected first, then used later when victims are less likely to connect the activity to the original action.

Several elements aligned to make the attack successful:

• Connection to an open, unsecured hotel WiFi network.
• Shared local network access with unknown guests.
• Public discussion of crypto holdings in a common area.
• Use of DeFi applications on an exposed device.
• Approval of a wallet request without close review.

Funds moved only after the hotel stay ended. Solana tokens and NFTs were transferred to another address. By the time suspicious activity was noticed, the wallet balance had dropped to zero.

Losses were limited because the affected wallet was a secondary hot wallet. Even so, the incident shows how little effort is required to empty an account. No malware was installed, no fake interface appeared, and no seed phrase was leaked. One unsafe network, one lapse in attention, and one approval were enough.

Security specialists advise treating all public networks as hostile. Mobile hotspots or trusted VPNs reduce exposure, especially while traveling. Wallet activity should be restricted to devices with updated software and minimal browser extensions.

Spreading funds across multiple wallets can help cap losses, while regular review and removal of unused approvals reduce the risk of delays. Physical discipline matters as well. Users are advised to avoid discussing holdings or wallet setups in public spaces, particularly when away from home.