Pink Drainer’s Phishing Scam Results in $4.4 Million Chainlink Loss
A cyber-hacking group known as Pink Drainer has been implicated in a sophisticated phishing scam that led to the theft of $4.4 million worth of Chainlink (LINK) tokens. The scam targeted a single victim who unknowingly authorized the transfer of 275,700 LINK tokens using the ‘Increase Approval’ function.
Pink Drainer Exploits ‘Increase Approval’ Function
The ‘Increase Approval’ function is a standard procedure in the crypto world that allows users to set limits on token transfers from one wallet to another. In this case, the victim’s approval enabled two separate transactions that drained the tokens without their knowledge.
According to crypto-security platform Scam Sniffer, 68,925 LINK tokens were diverted to a wallet labeled as “PinkDrainer: Wallet 2,” while the remaining 206,775 LINK was sent to a different address. The stolen funds were quickly converted into Ethereum (ETH) and laundered through the eXch service, making it difficult to trace.
$4.4 Million Chainlink Heist Linked to Pink Drainer
Scam Sniffer’s investigation confirms that Pink Drainer was responsible for this heist. However, the exact method used to deceive the victim into approving the token transfer remains unknown. Scam Sniffer has also discovered 10 new scam sites associated with Pink Drainer within the past 24 hours.
Pink Drainer has a reputation for targeting platforms like Twitter and Discord and has been involved in other incidents with Evomos, Pika Protocol, and Orbiter Finance. They were previously involved in a scam where they posed as crypto journalists and stole around $3 million from over 1,932 victims.
Recent data from Dune Analytics shows that Pink Drainer’s activities have escalated, resulting in total losses of $18.7 million and affecting 9,068 victims as of December 19.
Hot Take: Pink Drainer Continues to Evolve and Expand Its Scams
Pink Drainer’s latest phishing scam targeting Chainlink tokens demonstrates their sophistication and adaptability. Despite previous incidents and increased awareness, the group continues to find new ways to deceive crypto users and expand their operations. With millions of dollars at stake and thousands of victims affected, it is crucial for crypto enthusiasts to remain vigilant and take necessary precautions when engaging with digital assets.
Owen Patter is a distinguished crypto analyst, accomplished researcher, and skilled editor, leaving a notable imprint on the cryptocurrency landscape. As a proficient crypto analyst and researcher, Owen delves into the intricate realms of digital assets, offering insights that resonate with a diverse audience. His analytical acuity is harmoniously paired with adept editorial skills, allowing him to transform complex crypto information into easily comprehensible content.