$85 Million Stolen: Pink Drainer’s Impact on the Cryptocurrency Community

Pink Drainer, a notorious cryptocurrency wallet-draining service, has announced its retirement after facilitating the theft of over $85 million from more than 21,000 victims in the past year. The announcement came via a Telegram message, as reported by on-chain investigator ZachXBT.

TLDR

• Pink Drainer, a notorious crypto wallet-draining service, announced its retirement after stealing over $85 million from more than 21,000 victims in the past year.
• The developers claimed they reached their goal and will begin winding down their infrastructure, securely deleting all stored information.
• Pink Drainer was part of a larger network of phishing-as-a-service platforms, including Monkey Drainer and Inferno Drainer, which have also shut down recently.
• The service exploited technological vulnerabilities through social engineering and phishing to deceive users into signing transactions that drained their wallets of cryptocurrencies and NFTs.
• Despite the relief within the crypto community, some believe the threat remains as alternative phishing-as-a-service platforms continue to exist.

In the message, the developers behind Pink Drainer claimed that they had reached their goal and, as planned, it was time for them to retire. They stated, “After this message’s publication, we will begin winding down all of our infrastructure. All stored information will be wiped and securely destroyed.”

Pink Drainer was a part of a larger network of phishing-as-a-service platforms, which included other notorious services such as Monkey Drainer and Inferno Drainer.

These platforms provided cybercriminals with tools to exploit technological vulnerabilities, primarily relying on social engineering techniques and phishing URLs to steal cryptocurrency assets.

The modus operandi of these services involved creating convincing phishing sites that deceived users into signing transactions, ultimately draining their wallets of cryptocurrencies and NFTs.

The developers of these services charged fees and collected a percentage of the stolen assets as payment.

According to data from ScamSniffer, a Web3 anti-scam firm, Pink Drainer’s activities have had a significant impact on the cryptocurrency community, with over $85 million stolen from more than 21,000 victims in the past year alone.

The service has been linked to several high-profile attacks targeting various platforms and projects, such as Evomos, Pika Protocol, and Orbiter Finance.

The shutdown of Pink Drainer follows a recent trend in the world of cybercrime, with two other prominent phishing-as-a-service platforms, Monkey Drainer and Inferno Drainer, also ceasing operations in the past year.

While the exact reasons for their closure remain undisclosed, the impact of these shutdowns on the cryptocurrency community cannot be understated.

The retirement of Pink Drainer has been met with relief within the crypto community, as it marks a significant win in the ongoing fight against cybercrime.

However, some experts caution that the threat is far from over, as alternative phishing-as-a-service platforms continue to operate.

Yu Xian, the founder of blockchain security firm SlowMist, commented on Pink Drainer’s announcement, stating,

“The old [phishing] gang Pink Drainer announced its closure after making a total profit of $75M. It may not be that easy to ‘retire’ as there are a lot of law enforcement records. Waiting for the moment when the gang is caught.”