Notorious hacker group Pink Drainer, which specializes in stealing cryptocurrency, fell victim to a sophisticated address fraud, causing them to lose 10 ETH, worth about $30,000.

According to security platform MistTrack, the incident occurred at the end of June 2024 when Pink Drainer accidentally transferred 10 ETH to a fake wallet address. The attacker took advantage of the "address scam" technique, creating a wallet address similar to Pink Drainer's usual wallet address, tricking the hacker group into transferring money by mistake.

Understanding scams: address scams explained

Address scams are a common form of fraud in the cryptocurrency industry. The crook will send a small amount of cryptocurrency from a wallet with an address similar to the victim's wallet, causing confusion and the victim transferring money to the fake wallet.

This attack comes just a month after Pink Drainer announced it was shutting down, after reportedly raking in more than $85 million from cryptocurrency attacks. Data from Dune Analytics shows that since July 2023, Pink Drainer has stolen about $85.3 million in cryptocurrency.

The threat continues from crypto-draining groups

Although Pink Drainer has "washed its hands of the sword", the threat from cryptocurrency hacker groups still exists. Groups such as Angel Drainer, Pussy Drainer and Venom Drainer are still active, threatening users' property.

The Pink Drainer scam event is a wake-up call for the cryptocurrency community about the importance of increasing vigilance and equipping yourself with security knowledge. Users need to carefully check the wallet address before making a transaction to avoid becoming a victim of increasingly sophisticated scams.