Crypto whale loses $32 million in phishing attack

Phishing Attack

A crypto whale has reportedly fallen victim to a phishing attack, losing over $32 million in tokens due to a malicious transaction. The incident was initially flagged by blockchain security firm ScamSniffer on the social media platform X. The stolen assets, amounting to 12,083 wrapped ether tokens (spWETH), were linked to the decentralized finance (DeFi) protocol Spark and are valued at approximately $32.4 million.

According to blockchain intelligence company Arkham, the attack was orchestrated using the Inferno Drainer, a notorious scam-as-a-service tool. The software targets users by creating fake versions of popular DeFi applications, deceiving them into signing transactions that hand over control of their wallets. Inferno Drainer has reportedly been responsible for stealing over $215 million from more than 200,000 victims throughout its existence, as highlighted by ScamSniffer.

The service’s operators allegedly take a 20% commission on stolen tokens. Although Inferno Drainer was shut down by its developers in November 2023, it resurfaced in May 2024 with claims of improved features, new staff, and support for 28 different blockchains and hundreds of DeFi apps. The identity of the victim remains unconfirmed, but blockchain investigator ZachXBT noted significant transactions linking the compromised wallet to a whale known as CZSamSun, not to be confused with the Paradigm researcher known as @samczsun on X.

crypto whale hit by phishing attack

In a message sent from the victim’s wallet, a 20% reward was offered for the return of the stolen funds, though no response has been received from the alleged scammer. Blockchain analytics firm LookOnChain advised users to exercise caution by avoiding unfamiliar links and verifying all transactions before signing, to prevent falling prey to similar attacks.

In another incident, a fraudulent cryptocurrency app named WalletConnect reportedly stole $70,000 from users in a sophisticated scam targeting mobile users exclusively. The malicious app mimicked the reputable WalletConnect protocol but was actually a scheme to drain crypto wallets. The deceptive app managed to deceive over 10,000 users into downloading it, according to Check Point Research (CPR), the cybersecurity firm that uncovered the scam.

The scammers behind the app were well aware of the typical challenges faced by web3 users, such as compatibility issues and the lack of widespread support for WalletConnect across different wallets. They cleverly marketed the fraudulent app as a solution to these problems, taking advantage of the absence of an official WalletConnect app on the Play Store. In another attempt, cybersecurity scammers are increasingly compromising systems and delivering stealthy crypto mining malware.

One such recent threat identified in August is the “Cthulhu Stealer,” which disguises itself as legitimate software and targets personal information, including MetaMask passwords, IP addresses, and cold wallet private keys. Users are advised to be vigilant and cautious, avoiding unknown links and verifying transaction requests to safeguard their assets from these sophisticated scams.

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Howie Jones

Howie is an expert in business, software, and it's applications. She writes on various technologies and their uses in enterprise businesses.

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