Blockchain Security Firm Says Pink Drainer Responsible for $4.4 Million LINK Exploit

The cryptocurrency market has once again found itself in the crosshairs of malicious activities, with the notorious hacking group Pink Drainer linked to a recent exploit totaling $4.4 million in stolen LINK tokens. 

The recent attack orchestrated by Pink Drainer has resulted in a staggering $4.4 million loss for a user who fell victim to a phishing scam. On-chain analytics firm Etherscan has identified the incident, noting two transactions drained approximately 275,700 LINK from the unsuspecting user.

A notorious crypto hacking group Pink Drainer has recently stolen $4.4M from a single victim.
The hacking group has been linked to several Discord and Twitter hacks this year, stealing over $18 million from more than 9,000 victims. #hackhttps://t.co/xw1Oi6ttjY pic.twitter.com/4s6tPOWCXa

— BitcoinWorld Media (@ItsBitcoinWorld) December 29, 2023

This marks another troubling milestone for Pink Drainer, bringing the total number of victims to 9,068 and the cumulative stolen amount to a whopping $18.7 million. Etherscan flagged the initial transaction of 68,925 LINK sent to Pink Drainer, followed by a subsequent transfer of 206,775 LINK to another wallet. 

The incident has raised concerns among analysts, emphasizing the urgent need for increased vigilance within the crypto community. Exploiting vulnerabilities in user accounts is a recurring theme in Pink Drainer’s attacks, and users are urged to exercise caution.

The Aftermath and Community Response

The aftermath of this incident has seen a surge in outrage among users in the industry, prompting calls for enhanced disclosure measures and a heightened sense of caution among holders. 

Scam Sniffer, a Web3 Anti-Scam entity, has identified Pink Drainer as the perpetrator and flagged ten fraudulent websites associated with the hacking group in the last 24 hours. Despite these efforts, the exact method of how the victim engaged with the fraudulent website remains unclear.

Pink Drainer’s History of Scams

Unfortunately, this is not the first time Pink Drainer has wreaked havoc in cryptocurrency. In a previous incident in June, the group was linked to a $3.3 million scam that targeted 2,300 victims. 

Operating under the guise of journalists from digital asset news websites, the hackers conducted interviews, leading to a Know-your-customer process and eventual compromise. Discord attacks were common in these scams, with hackers exploiting compromised accounts to send phishing links.

The blockchain security firm investigating these incidents revealed a pattern of Discord hacks associated with Pink Drainer, emphasizing the need for comprehensive security measures on the platform.