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Crypto hackers “Pink Drainer” steal $4.42M in Chainlink in phishing attack

Pink Drainer

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TL;DR

  • “Pink Drainer” hackers swiped $4.42 million in LINK through phishing.
  • The victim lost 275,700 LINK, bought for $2.26 million, now valued at $4.66 million.
  • Pink Drainer stole $18.6 million from 9,000+ victims, highlighting crypto security urgency.

In a recent cybercrime incident, the notorious hacking group known as “Pink Drainer” has struck again, leaving a victim reeling from a significant loss. The victim, who wishes to remain anonymous, fell victim to a sophisticated phishing attack, resulting in the theft of a staggering $4.42 million worth of Chainlink (LINK) tokens.

Phishing attack: A costly mistake

The victim’s unfortunate ordeal began when they unwittingly clicked on a phishing link. Deceived into signing an “Increase Approval” transaction, the investor watched helplessly as 275,700 LINK tokens, valued at $4.42 million, were siphoned off by malicious actors.

As of the attack, the price of LINK was hovering around $16 per token, making the stolen amount even more significant. Before the incident, the victim had accumulated LINK tokens since June 7, 2022, gradually amassing a substantial holding of 290,750 LINK tokens. 

These tokens had been acquired at an average price of $7.8, amounting to a total investment of $2.26 million. With LINK’s price surge, the value of the holdings increased to an impressive $4.66 million, resulting in a profit of nearly $2.4 million.

Following the successful theft, the stolen assets were distributed among multiple wallets. A portion of 68,925 LINK was transferred to a wallet identified as “PinkDrainer: Wallet 2.” The remaining 206,775 LINK was sent to an address ending with “Fake_Phishing269918.” The whereabouts of these funds remain unknown, as tracing cryptocurrency transactions can be challenging due to the pseudonymous nature of blockchain transactions.

Pink Drainer has garnered attention throughout the year for its involvement in a series of Discord and Twitter hacks. Data from Dune Analytics reveals that as of December 19, 2023, Pink Drainer has successfully stolen $18.6 million from more than 9,000 victims. One of the most significant thefts occurred on July 19, 2023, when Pink Drainer made off with $1.38 million.

The group’s methods often involve tricking victims into clicking on malicious links or providing sensitive information, which allows them to gain unauthorized access to wallets and steal cryptocurrency holdings. Pink Drainer’s ability to continuously adapt and evade security measures has made them a persistent threat in the cryptocurrency space.

The need for increased security awareness

This incident serves as a stark reminder of the importance of maintaining vigilant security practices in cryptocurrency. Phishing attacks remain a prevalent threat, and investors and crypto enthusiasts must exercise caution when interacting with online platforms and links.

Crypto users are advised to take several precautions to protect their holdings, including:

Verify URLs: Always double-check the URL of websites or links before entering sensitive information or making transactions. Look for secure connections (https://) and ensure that the domain is legitimate.

Use Two-Factor Authentication (2FA): Enable 2FA wherever possible to add an extra layer of security to your accounts. This can prevent unauthorized access even if login credentials are compromised.

Beware of Unsolicited Messages: Avoid clicking on links or downloading attachments from unsolicited emails, social media messages, or direct messages. Cybercriminals often use these channels to distribute phishing links.

Educate Yourself: Stay informed about common phishing tactics and scams in the crypto space. Knowledge is your best defense against falling victim to these attacks.

Secure Your Private Keys: Store your private keys and wallet information in a safe and offline location. Avoid sharing these details with anyone and use hardware wallets for added security.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Ibrahim Abdulaziz

A fervent advocate, Ibrahim shares his wealth of knowledge on crypto and blockchain technology in an engaging and informative style. He frequents places where influencers gather for his next scoop. His vision is that the decentralized nature, security features, and potential for financial inclusion will drive widespread massive crypto adoption.

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