In a remarkable blast to the cryptocurrency community, a prominent crypto whale has reportedly lost over $32 million (£26 million) in wrapped ether tokens due to a malicious phishing attack. The incident was first highlighted by the blockchain security service ScamSniffer in a post on X (formerly Twitter).
The Details of the Attack
The victim, identified by blockchain analyst ZachXBT as linked to a wallet known as CZSamSun, lost a staggering 12,083 spWETH tokens, valued at approximately $32.4 million at current market rates. This theft was executed through a transaction powered by the Inferno Drainer, a notorious scam-as-a-service that has been active in the crypto space.
The Inferno Drainer targets users by deploying counterfeit versions of popular decentralized finance (DeFi) applications, tricking victims into relinquishing control of their wallets. According to data from Dune Analytics, this service has defrauded over 200,000 users, accumulating losses exceeding $215 million since its inception.
Return of the Inferno Drainer
Originally shut down by its developers in November 2023, the Inferno Drainer resurfaced in May 2024, boasting improvements and claiming to be “better than ever.” The service now purports to support 28 different blockchains and various DeFi applications, enabling operators to take a 20% cut from stolen funds.
Cautionary Measures for Crypto Users
In light of this incident, security experts are urging cryptocurrency users to exercise extreme caution. LookOnChain, an analytics firm, advised on X, “To avoid being phished, please do not click on any unknown links and do not sign any unknown signatures. Always double-check when signing signatures.”
As the investigation continues, the identity of the phished whale remains unconfirmed, and a blockchain message from the victim’s wallet offering a 20% reward for the return of the funds has not elicited a response from the alleged scammer. The community is on high alert as phishing attacks continue to evolve, posing significant risks to crypto investors.
