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

David Pokima
Last updated: | 2 min read
Source: AdobeStock / Tomasz Bidermann

Cryptocurrency hacking group, Pink Drainer has been linked to the recent $4.4 million LINK user drain, increasing the number of their victims to 9,068 with a total of $18.7 million stolen.

According to on-chain analytics firm Etherscan, another user has fallen victim through an increased allowance transaction. The user was drained of about 275,700 LINK worth approximately $4.4 million from two separate transactions.

The first flagged transaction was 68,925 LINK to Pink Drainer as noted by Etherscan while a subsequent transaction of 206,775 LINK was sent to another wallet.

Several analysts have confirmed the incident and highlighted the need for more vigilance as the hacking group has been linked to more scams in the past adding that some accounts might be vulnerable.

Reddit user jbtravel84 gave an analysis on the issue flagging wallets linked to the incidents warning funds are getting swapped to Ethereum (ETH) and moved into intermediary addresses adding that a little more investigation might reveal the culprits behind the wallets.

According to the analysts, the hacker is linked to a popular hacking group that has carried out multiple scams previously. The incident has sparked outrage among users in the industry calling for more disclosure and on holders to exercise extra caution.

Scam Sniffer has noted that Pink Drainer is responsible for the theft and marked 10 fraudulent websites linked to the hacking group in the last 24 hours. It is still unclear how the victim began interacting with the fraudulent website.

Pink Drainer unending scams

This incident is not the first time the infamous group has struck stealing millions from victims unfortunately adding to the list of growing industry scam numbers.

In June, the group was linked to a scam involving $3.3 million from 2,300 victims. Scam Sniffer noted that the bad actors posed as journalists from digital asset news websites conducting interviews leading up to a Know-your-customer process and then the final compromise.

“Hackers send phishing links through Discord accounts they’ve gained access to. Many users have opened malicious websites in error and signed malicious signatures, resulting in the loss of their assets.” 

The blockchain security firm analyzed several blockchains and concluded that all Discord attacks could be linked to the same group.

“By analyzing the malicious websites created by Pink Drainer in the past month, we found that many Discord hacks are related to them,” they added.

It was also reported that 216 users of the decentralized finance (DeFi) platform Slingshot were victims of an exploit in June. Per the report, the hacking group compromised the Twitter account of the platform and posted a false link to claim airdrops draining accounts in the process.