Railgun, a popular crypto privacy protocol, recently made headlines for successfully preventing Inferno Drainer from laundering stolen funds. A recent report by SlowMist’s anti-money laundering tracking system revealed that Railgun intercepted an attempt to launder over 174 ETH, valued at approximately $533,000. As a result, the perpetrators were forced to return the stolen ETH to Inferno Drainer’s original wallet.
Inferno Drainer, known for its activities as a multichain crypto drainer, has been operating under a scam-as-a-service model. The group utilized sophisticated phishing websites to deceive victims into connecting their crypto wallets to the attackers’ network. Despite announcing the shutdown of its operations after siphoning off over $80 million from 5,000 victims through 689 phishing sites, Inferno Drainer resumed its activities in May citing increased demand and the exit of competitors like Pink Drainer.
Tornado Cash, a popular tool for laundering stolen funds by scammers, faced scrutiny following US government sanctions. Experts have pointed to Railgun as a viable alternative to Tornado Cash. Crypto reporter Colin Wu highlighted Railgun’s use by the Lazarus Group, a notorious North Korean hacker group. The FBI previously accused Railgun of laundering over $60 million worth of stolen ETH from the 2022 Harmony Bridge heist. Railgun has denied allegations of facilitating money laundering for North Korea and other US-sanctioned entities, emphasizing its Private Proofs of Innocence feature as a safeguard against unauthorized access.
Despite a period of inactivity, Inferno Drainer claimed to have drained over $125 million in crypto assets during private operations. The group cited the closure of major competitors and concerns about reselling its services as factors influencing its return to the illicit market. Railgun’s role in intercepting the group’s recent attempt to launder stolen funds underscores the protocol’s significance in combating financial crimes within the crypto space.
Railgun’s success in thwarting Inferno Drainer’s money laundering attempt highlights the importance of robust privacy protocols in safeguarding the integrity of digital assets. As malicious actors continue to exploit vulnerabilities in the crypto ecosystem, the need for innovative solutions like Railgun becomes increasingly critical in deterring financial fraud and protecting users from scams and illicit activities.
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