The crypto-hacking group known as Pink Drainer has recently been implicated in a highly sophisticated phishing scam, resulting in the loss of $4.4 million worth of Chainlink (LINK) tokens. This cyber heist targeted a single victim who unknowingly fell victim to a deceptive tactic involving the signing of a transaction linked to the “Increase Approval” function.
The “Increase Approval” function is a standard procedure in the crypto world that allows users to set limits on the number of tokens accessible for transfer by another wallet. In this case, without the victim’s knowledge, the action enabled the unauthorized transfer of 275,700 LINK tokens in two distinct transactions.
According to Scam Sniffer, a crypto-security platform, the tokens stolen in this scam were drained in two separate transfers. Initially, 68,925 LINK tokens were diverted to a wallet identified as “PinkDrainer: Wallet 2” by Etherscan. The remaining 206,775 LINK tokens were sent to a different address ending with “E70e.”
ZachXBT, a renowned crypto detective, has revealed that the stolen funds were quickly converted into Ethereum (ETH) and laundered through the eXch service. This process complicates the traceability of the assets, making it challenging to recover the stolen funds. ZachXBT stated, “The stolen funds were sold for ETH and are currently being laundered through eXch.”
The Involvement of Pink Drainer and Ongoing Scam Sites
Scam Sniffer’s investigation confirms the involvement of the Pink Drainer group in this heist, although the exact method used to coerce the victim into authorizing the token transfer remains unclear. Additionally, Scam Sniffer has identified at least 10 new scam sites connected to Pink Drainer in the last 24 hours alone.
The Pink Drainer syndicate is well-known for its high-profile attacks on platforms such as Twitter and Discord. They have previously been linked to incidents involving Evomos, Pika Protocol, and Orbiter Finance. Earlier this year, they were also implicated in a scam posing as crypto journalists, which resulted in the theft of approximately $3 million from over 1,932 victims.
The latest data from Dune Analytics reveals an escalation in Pink Drainer’s activities, with total losses reaching $18.7 million. These attacks have affected a staggering 9,068 victims as of December 19th. It is evident that Pink Drainer is a formidable force to be reckoned with in the world of cryptocurrency and cybercrime. Their ability to carry out sophisticated phishing scams and launder stolen funds highlights the need for increased security measures within the crypto community.
The Pink Drainer group’s involvement in a highly sophisticated phishing scam resulting in the loss of $4.4 million worth of Chainlink tokens is alarming. The diversion and laundering of stolen funds, along with the existence of numerous scam sites connected to Pink Drainer, indicate an escalation in their criminal activities. It is crucial for individuals and platforms within the crypto space to remain vigilant and implement robust security measures to protect against the growing threat of cybercrime.
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