Pink Drainer Ceases Operations After Stealing $75 Million in Cryptocurrency Assets
Pink Drainer Shuts Down
The creators behind Pink Drainer, a wallet draining service implicated in the theft of millions of dollars worth of assets, have announced the termination of their operations. Pink Drainer is shutting down after accumulating $75 million worth of stolen cryptocurrency funds and attacking nearly 20,000 victims.
Developers Announce Retirement
“We have reached our goal and now, according to plan, it’s time for us to retire,” the developers said in a Telegram announcement, as first noted by on-chain sleuth ZachXBT. The developers added, “After this message’s publication, we will begin winding down all of our infrastructure. All stored information will be wiped and securely destroyed.”
Phishing Scam Results in Millions in Losses
According to data from ScamSniffer, Pink Drainer has been associated with the theft of $75.64 million in cryptocurrency from 19,810 victims over the past year. Earlier, in March, a phishing email scam linked to the Pink Drainer kit targeted creditors of bankrupt crypto companies, resulting in thefts amounting to at least $5 million.
Impact on the Crypto Community
Since inception, Pink Drainer provided a software toolkit that cybercriminals employed to pilfer cryptocurrency assets by exploiting technical weaknesses. Moreover, the strategy was harnessed with a heavy reliance on social engineering and phishing tactics. These schemes utilized deceptive phishing websites to dupe users into authorizing transactions that emptied their wallets of cryptocurrencies and NFTs.
About Latest Block tower Hack
BlockTower, a prominent cryptocurrency hedge fund, recently experienced a significant security breach where fraudsters managed to siphon off part of its assets under management. Insiders disclosed the incident but declined to provide further details due to its sensitive nature. According to PitchBook, BlockTower oversees over $1.7 billion in assets.
Hacker Remains at Large
At present, the hacker remains at large, and BlockTower has yet to recover the stolen funds. However, the firm has engaged blockchain forensics experts to investigate the theft. Additionally, BlockTower has alerted all key partners about the breach, as reported by Bloomberg. However, the hedge fund has not yet issued an official statement on the matter.
Rise in Crypto Hacking Incidents
Moreover, the market has seen a surge in cryptocurrency hacking incidents recently. The infamous Lazarus Group from North Korea has been implicated in many of these attacks, often utilizing crypto-mixing services like Tornado Cash to obscure their tracks. Just last week, a scammer made off with over $71 million worth of Wrapped Bitcoin (WBTC) coins, only to return the funds shortly thereafter.
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