Investigators closing in on crypto scammers leading to their retirement
Crypto drainers, like Inferno and Pink, have made headlines recently by announcing their retirement. However, victims are still losing substantial amounts of money to these schemes. A crypto drainer typically tricks a user into connecting a wallet and approving a transaction that drains the user’s funds.
In October, over $20 million was lost to phishing schemes, with the number of victims increasing by 20% month-over-month to 12,058. While the volume of money lost was down by 56% compared to September, the growing number of victims is a cause for concern.
Law enforcement and cybersecurity firms are making progress in catching cyber crooks. The shutting down of drainers seems to be linked to them earning enough money and the fear of being caught by law enforcement. Tether, the largest stablecoin issuer, recently froze at least three wallets connected to drainer operations.
Advanced investigations have linked a suspicious entity known as Konpyl to fake Rabby wallet scams that drained about $1.6 million from victims. The latest trio of accounts frozen by Tether have connections to drainer wallets and Konpyl as well.
Crypto drainers often exploit vulnerabilities in smart contracts or use phishing attacks to access user wallets. These drainers operate as businesses, with the developers taking a commission from the thefts. Popular drainers like Inferno, Pink, and Monkey Drainer have all announced shutdowns recently, with Inferno being the latest to unplug in October.
Evidence suggests a link between Konpyl and Inferno drainer accounts. Additionally, analysis of fund movements points to Konpyl potentially being a major user of Inferno Drainer or having deeper involvement in these schemes.
Overall, while some high-profile crypto drainers are retiring, the battle against these scams is far from over, with law enforcement and cybersecurity teams working diligently to apprehend those behind these fraudulent schemes.