Theft of $4.4 Million in Chainlink Tokens by Pink Drainer Hackers
The owner of Chainlink (LINK) tokens fell victim to a hacker attack by the notorious group Pink Drainer, resulting in the loss of assets worth $4.4 million. According to Scam Sniffer, the attackers deceived the user into signing a transaction related to the IncreaseAllowance function, leading to the loss of 275,700 Link through two transfers.
How the Attack Occurred
The IncreaseAllowance function enables users to determine the number of tokens they allow another wallet to transfer from their address. In this case, 68,925 tokens were transferred to a crypto wallet labeled “PinkDrainer: Wallet 2” by Etherscan. The remaining 206,775 LINK were sent to another address.
Involvement of Pink Drainer and Money Laundering
Scam Sniffer confirmed that the theft was carried out by the Pink Drainer group. However, it remains unclear how they coerced the user into consenting to transfer the tokens. Crypto detective ZachXBT revealed that the stolen funds were converted into Ethereum and laundered through the eXch service.
Pink Drainer’s History of Attacks
Pink Drainer has been involved in several high-profile attacks on various platforms, including Evomos, Pika Protocol, Orbiter Finance projects, and even posing as crypto journalists. In 2023 alone, they stole $18.7 million from 9,068 users according to Dune Analytics.
Total Cryptocurrency Theft in 2023
In 2023, hackers managed to steal a staggering $2 billion worth of cryptocurrency. Notable thefts include the Euler Finance protocol hack, which resulted in the loss of approximately $200 million. Other major attacks targeted BonqDAO, the Poloniex crypto exchange, and the Atomic Wallet crypto wallet, each causing more than $100 million in damage.
Hot Take: Pink Drainer Strikes Again with $4.4 Million Chainlink Token Theft
The Pink Drainer hacker group has once again made headlines with their latest attack, stealing $4.4 million worth of Chainlink (LINK) tokens. By exploiting the IncreaseAllowance function, they tricked a user into signing a transaction that led to the loss of over 275,000 Link tokens. The stolen funds were converted into Ethereum and are currently being laundered through the eXch service. This incident is just one of many carried out by Pink Drainer, who has been responsible for multiple high-profile attacks and scams in the crypto space. It serves as a reminder of the ongoing need for robust security measures to protect against such threats.
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