This wallet draining was as a result of a lingering infinite approval on a compromised smart contract. Approvals have long been one the main achilles heals of EVM wallets. One of the main reasons we built the Abstract Global Wallet was to have an easily accessible smart wallet that could solve this problem. In the standard EVM swap flow, users need to give approval to the DEX to use their tokens for a swap. DEXes will often ask for infinite approvals because it makes the UX better (subsequent approval txs are not needed). However, this is how the situation below happens. Smart wallets instead allow apps to ask for a finite amount approval and execute the swap in the same batched transaction. So if you wanted to swap 100 USDC for ETH, the DEX could batch an approval for 100 USDC and the swap in the same tx, giving a better UX and providing more safety for the user. I will add that EIP7702 does add the ability for existing EOA wallets to do batching on many EVM ecosystems, but adoption hasn't been extremely high yet. On Abstract, since most users have an AGW, apps can add batching to their flows to reduce the need for these lingering approvals. Because the ecosystem started with heavy smart contract wallet usage from the start, many apps have built purely for this flow.(cygaar)