🛑 Wallet Drain via Fake Token Approvals on BNB Smart Chain: A Cautionary Tale Featuring GPTAI & SKAI

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Introduction

The world of decentralized finance (DeFi) offers freedom, innovation, and, unfortunately, increasing sophistication in scams. A recent wave of wallet-drain attacks has surfaced involving tokens like GPTAI and SKAI on the BNB Smart Chain. Users, even those interacting through reputable platforms like 1inch Network, are losing tokens from their wallets through cleverly crafted smart contracts.

This blog post exposes how these fake tokens exploit standard wallet permissions, how victims are tricked, and how you can protect yourself.

🧠 The Attack Vector: Fake Tokens with Malicious Smart Contracts

Scammers are now using a new trick in their playbook: deploying legitimate-looking tokens (e.g., GPTAI, SKAI) with malicious functions embedded in the contract code. These tokens are distributed through mass airdrops or made available on DEX aggregators like 1inch, hoping users will try to swap or sell them.

Here's how the scam unfolds:

🪂 Step 1: Airdrop or Visibility of a Fake Token

Tokens like GPTAI and SKAI are either:

  • Airdropped to your wallet, or

  • Listed on DEX aggregators (thanks to open liquidity pools) with names that resemble popular projects, luring users into believing they’re real.

You see the tokens in your wallet. They have value. You think, Why not swap them for BNB?

✍️ Step 2: You Approve the Token via a Trusted Platform

You head to a DEX like 1inch or PancakeSwap to swap the token. The interface prompts you to “approve” the token—standard behavior when interacting with any ERC-20/BEP-20 token.

But here's the trick:

The token contract contains a hidden function like execute(address _target, address _a, address _b, uint256 _c), which can be abused to drain your assets using transferFrom() or delegateCall() logic.

Your approval gives this smart contract the permission to move tokens out of your wallet, not just the fake ones, but any token it targets via this logic.

💥 Step 3: The Hacker Executes a Wallet Drain

With your approval on record, the scammer then calls:

solidity
execute(_target, your_wallet, their_wallet, amount);

In this case, there _target is another contract that knows how to drain your wallet.

You didn’t “send” anything. You didn’t sign a transfer. But your earlier approval granted them control.

Tokens like USDT, BNB, or others vanish from your wallet, often converted quickly into BNB and sent to mixing protocols or swap routers to cover their tracks.

📉 Step 4: Token Value Crashes

As the scammers drain more wallets, they also dump GPTAI or SKAI tokens to extract value, causing the tokens’ prices to plummet. It becomes obvious to victims that something is wrong, but by then, the damage is done.

🧪 Case Study: A Real Transaction Sample

In one case, the following transaction was seen on BscScan:

makefile
Function: execute(address _target, address _a, address _b, uint256 _c)
MethodID: 0x239aee06

This indicates a smart contract calling another contract to carry out potentially malicious logic. The user likely approved this unknowingly when attempting to swap a fake token like GPTAI.

🔐 How to Protect Yourself

✅ 1. Never Approve Unknown or Airdropped Tokens

If you didn’t buy or earn it through a reputable method, don’t touch it. Airdropped tokens are often traps.

✅ 2. Use Token Approval Tools

Immediately check and revoke any suspicious approvals using:

✅ 3. Stick to Verified Tokens

Use sites like CoinGecko or CoinMarketCap to verify token addresses. Don’t rely on names—scammers often copy legitimate token names.

✅ 4. Use a Burner Wallet

For new or experimental dApps, use a “burner” wallet with limited funds. Never test risky platforms with your main wallet.

✅ 5. Beware of Lookalike Websites

Always double-check the domain before using a service like 1inch or PancakeSwap. Fake clones can trick you into signing malicious contracts.

🧼 Final Word

Blockchain doesn’t forgive mistakes. The GPTAI and SKAI scam is a stark reminder that wallet approvals are as powerful as private keys. One innocent-looking “approve” click can open the door to wallet-draining attacks, even through interfaces you trust.

Stay vigilant, use the right tools, and think twice before interacting with unknown tokens.

✉️ Resources

**Rodgers Munene**​​

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