Crypto Whale Loses $32 Million in DeFi Phishing Attack

Crypto Whale Loses $32 Million in Phishing Attack. What’s The Story?

A major cryptocurrency whale has suffered a significant loss of $32 million due to a phishing attack, with 12,083 wrapped ether tokens (spWETH) stolen from the DeFi platform Spark. 

Blockchain security firm ScamSniffer flagged the incident on X, revealing that the attackers used a scam-as-a-service tool called Inferno Drainer.

Inferno Drainer Software Reappears in 2024

The Inferno Drainer tool, known for creating fake versions of popular decentralized finance (DeFi) apps, tricked the whale into signing transactions that gave hackers control of their wallet. 

Inferno Drainer had been shut down in November 2023 but resurfaced in May 2024 with claims of new features, support for 28 blockchains, and hundreds of DeFi apps. 

The software has allegedly stolen over $215 million from more than 200,000 victims. The hackers behind this tool reportedly take a 20% commission on all stolen funds.

Fake Wallet App Steals $70K in Cryptocurrency

In a separate incident, a fraudulent wallet app called WalletConnect was discovered on Google Play, tricking over 10,000 users and stealing $70,000. The app, pretending to be a legitimate tool, was part of a sophisticated scam targeting mobile users exclusively. 

The cybersecurity firm Check Point Research (CPR) uncovered this scam, highlighting that scammers exploited the absence of an official WalletConnect app on the Play Store to lure victims.

Ongoing Threats in the Crypto Space

As cyber threats in the cryptocurrency space continue to evolve, blockchain experts advise users to exercise caution. ZachXBT, a well-known blockchain investigator, identified links between the whale's wallet and an account known as CZSamSun. While the whale offered a 20% reward for the return of their funds, no response has been received from the attacker. 

Meanwhile, other threats like the Cthulhu Stealer, which targets MacOS systems, continue to steal private keys and MetaMask passwords. Blockchain analytics firm LookOnChain warns users to avoid unfamiliar links and double-check all transactions to prevent such attacks.

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