The post Crypto Hack: Pink Drainer Falls Victim to $30,000 Crypto Scam After Retirement appeared first on Coinpedia Fintech News
This was found rather ironic as Pink Drainer, a hacking group has been on the receiving end of an address poisoning scam resulting in a loss of 10 Ether, which is equivalent to $30,000. The case was described by crypto compliance platform MistTrack on July 7 and is merely one of the many dangers lurking in the crypto space despite being executed by the fraudsters themselves.
A notorious cybercriminal, Pink Drainer, lost 10 Ether to a scammer wallet in late June after falling for a trick. The type of fraud is called address poisoning where the attacker sends a small amount of cryptocurrency from a wallet with an address that is similar to the one of the target but differs from it only by one symbol, to one of the subject’s typical wallets. This technique is designed to make the target send a large sum of money to the offender’s address while thinking it is their own.
MistTrack has elaborated that the tricks the scammers employed include the use of bots to follow new transactions and derive subsequent addresses with the first and last characters similar to the target’s address.
The thinking behind it is victims will paste the scam address instead of the intended one. In the case of Pink Drainer, the group fell into the same wallet number trick where the address was just a copy of the previous one, and they lost 10 ETH.
Greed gets the better of a notorious scammer
This came a month after Pink Drainer declared its retirement on the 17th of May with over $75 million worth of stolen crypto assets. In the analysis of the information originating from Dune Analytics’ platforms, it is evident that Pink Drainer embezzled $85. 3 million worth of crypto from the month of July 2023. They are also not immune to the scams that they created and the recent one is appalling given their retired state in the business.
Bitcoin and other crypto investors are encouraged to cross-check the wallet addresses they intend to use in the transaction in order to be not exploited by address poisoning cons. This case is a vivid example of the threats still present in the era of cryptocurrency, in which even the organizers of scams can become victims of them.
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