February Phishing Attack Drains $264K in Wrapped Bitcoin From Phantom Chat

Recent cryptocurrency news highlights a significant security breach where a phishing attack compromised $264,000 worth of Wrapped Bitcoin through Phantom Chat, the built-in messaging feature of Phantom Wallet. This incident underscores the evolving threats users face in the digital asset space and the critical need for robust protective measures. Blockchain investigator ZachXBT documented the case, revealing sophisticated tactics employed by scammers that exploit user behavior and transaction patterns.

How Address Poisoning Phishing Attack Exploits User Behavior

The phishing attack that targeted Phantom users involved a technique called address poisoning, where bad actors send small, seemingly legitimate transactions to user wallets. The strategy relies on victims copy-pasting the fraudulent address directly from their transaction history, believing they’re interacting with a known recipient. In this particular incident, the victim transferred 3.5 Wrapped Bitcoin (wBTC) through such a compromised transaction path.

ZachXBT’s investigation revealed this attack pattern is becoming more sophisticated, as users often assume addresses in their recent transaction history are trustworthy. The investigator called for Phantom to enhance its interface protections, emphasizing that unfiltered spam transactions create fertile ground for repeat phishing attempts. This type of phishing attack represents a category of threats that require user education and platform-level safeguards working in tandem.

AI-Powered Defense: The Case for Smart Contract Verification

The $264K loss from this phishing attack has renewed focus on preventive technologies. DeepSnitch AI has emerged as a solution specifically designed to combat such threats. The platform functions as an intelligence layer, enabling users to scan smart contracts and wallet addresses before engaging with them, potentially identifying malicious or fraudulent entities with speed and accuracy.

Beyond immediate phishing detection, DeepSnitch AI offers additional tools for deeper market analysis. Its AI agents operate continuously, monitoring whale activities, tracking market movements, and identifying emerging patterns that might signal risk. The platform’s AuditSnitch feature specifically targets scam address identification and compromised smart contract detection—directly addressing vulnerabilities exposed by incidents like the Phantom phishing attack. For users navigating today’s threat landscape, such verification tools represent a meaningful layer of defense.

Bitcoin Spot ETFs See Institutional Interest Spike

While the phishing attack demonstrates security vulnerabilities at the user level, broader market metrics show institutional confidence in cryptocurrency assets. According to SoSoValue data, Bitcoin Spot ETFs recorded a three-day inflow streak, with total institutional inflows reaching $311 million as of February 11. The latest single-day inflow reached $166.6 million on February 10, signaling sustained institutional demand.

However, this positive institutional activity has not prevented price volatility. As of late February 2026, Bitcoin was trading at $65.92K, reflecting a 4.09% decline over the past seven days and a steeper 22.10% monthly downturn. Despite these near-term fluctuations, market analysts continue to model longer-term scenarios, with some projections suggesting Bitcoin could approach $92,500 in coming months.

Low-Cap Opportunities in Today’s Volatile Market

Market participants increasingly view lower-capitalization cryptocurrencies as vehicles for substantial returns, particularly in volatile conditions like those currently affecting Bitcoin. DeepSnitch AI has raised over $1.57 million in its presale funding round, with the project approaching $2 million in total raised. The project’s native token, DSNT, has appreciated 164% during its presale phase.

The token trades at $0.03985 per unit during the current presale window. Investors participating in the presale gain access to DeepSnitch AI’s full intelligence platform featuring five specialized AI agents. These agents provide real-time market feeds, insider trade monitoring, and identification of top-performing assets alongside emerging projects. Beyond trading utility, the platform’s focus on smart contract verification and address validation directly addresses risks exemplified by events like the Phantom phishing attack, creating practical value beyond speculative appreciation.

Bankrcoin’s Recent Rally Shows Small-Cap Potential

Among smaller-cap projects, Bankrcoin demonstrated notable momentum during the current market cycle. The asset climbed to an all-time high of $0.001201 after establishing support near the $0.0004 level. However, as of February 12, Bankrcoin pulled back to $0.00079, approximately 35% below its peak.

Despite this retracement, medium-term metrics reveal strength: Bankrcoin posted a 36.8% gain across the seven-day timeframe and surged 195.8% on a monthly basis. CoinGecko data suggests potential accumulation could drive Bankrcoin toward $0.002093 in the coming months, contingent upon sustained buying pressure and positive sentiment reversals.

Security, Vigilance, and Strategic Portfolio Positioning

The $264K phishing attack via Phantom Chat serves as a timely reminder that security risks remain embedded in cryptocurrency market participation. While institutional capital continues flowing into Bitcoin ETFs—evidencing confidence in the asset class—individual security vigilance remains paramount. Tools designed to verify smart contracts and wallet addresses, such as those offered by DeepSnitch AI, represent practical additions to a security-conscious investor’s workflow.

Small-cap opportunities like DeepSnitch AI and Bankrcoin offer asymmetric risk-reward profiles during volatile periods, but such positions require careful due diligence and verification. The convergence of institutional adoption and individual security awareness will likely define risk management frameworks for the next market cycle.