A crypto whale has fallen victim to a phishing attack, losing over $32 million in tokens through a malicious transaction. Blockchain security firm ScamSniffer first reported the incident on X (formerly Twitter), revealing that the stolen assets—12,083 wrapped ether tokens (spWETH)—were tied to the decentralized finance (DeFi) protocol Spark, with a total value of approximately $32.4 million.
Attack Orchestrated Using Inferno Drainer Scam Software
Blockchain intelligence firm Arkham confirmed that the phishing attack was carried out using Inferno Drainer, a notorious scam-as-a-service tool. Inferno Drainer specializes in creating fake versions of popular DeFi applications, tricking users into signing fraudulent transactions that give attackers access to their wallets.
According to a Dune Analytics dashboard created by ScamSniffer, Inferno Drainer has stolen over $215 million from more than 200,000 victims since its inception. The service’s operators reportedly take a 20% commission on stolen assets.
Inferno Drainer’s Return and Expanded Capabilities
Although Inferno Drainer was originally shut down by its developers in November 2023, it resurfaced in May 2024, boasting improved features, an expanded team, and support for 28 blockchains and hundreds of DeFi apps.
While the identity of the whale victim has not been officially confirmed, blockchain investigator ZachXBT pointed to substantial transactions connecting the compromised wallet to an individual known as “CZSamSun,” not to be confused with the Paradigm researcher “@samczsun” on X. A message from the victim’s wallet offered a 20% reward for the return of the stolen funds, but no response from the scammer has been received.
Warnings to DeFi Users
Blockchain analytics firm LookOnChain urged users to remain cautious, advising them to avoid unfamiliar links and double-check all transactions before signing to avoid falling victim to similar scams.
Fake Wallet App Steals $70,000 in Crypto
In a related event, a fraudulent cryptocurrency wallet app on Google Play, called WalletConnect, was found to have stolen $70,000 from users in a sophisticated scam. The app mimicked the reputable WalletConnect protocol, deceiving over 10,000 users into downloading it.
Cybersecurity firm Check Point Research (CPR), which uncovered the scam, noted that the app exploited common issues faced by web3 users, such as compatibility problems with different wallets. Scammers marketed the app as a solution to these problems, taking advantage of the absence of an official WalletConnect app on the Play Store.
Rising Threats from Malware
In addition to these phishing and app-based attacks, new cyber threats are emerging. Cybercriminals have started using automated email replies to deliver crypto-mining malware, and in August 2024, another malware named “Cthulhu Stealer” was discovered. Targeting MacOS systems, it disguises itself as legitimate software and aims to steal personal information, including MetaMask passwords, IP addresses, and private keys from cold wallets.
As phishing attacks and malware continue to evolve, the crypto community is urged to stay vigilant and adopt robust security practices.
