Crypto Whale Loses $32 Million in Shocking Scam

A significant crypto incident has led to the loss of over $32 million in tokens after a whale mistakenly executed a malicious transaction, according to blockchain security firm ScamSniffer.

The affected tokens were wrapped ether from the decentralized finance protocol Spark, totaling 12,083 spWETH, currently valued at around $32.4 million.

The transaction was executed through the Inferno Drainer, a scam service that tricks users into authorizing malicious actions by impersonating legitimate DeFi applications. Blockchain intelligence company Arkham reported that this scam has victimized over 200,000 individuals, resulting in losses exceeding $215 million.

Despite being shut down in November 2023, Inferno Drainer resurfaced in May 2024, claiming improvements and new features. The operators take a 20% cut from the stolen assets and claim to operate across 28 blockchains and numerous DeFi platforms.

READ MORE:

Crypto Platform Loses $2 Million in Hack and Offers Job to Thief

While the identity of the victim remains unverified, blockchain investigator ZachXBT has linked the affected wallet to a crypto whale known as CZSamSun. A message from the victim’s wallet offered a 20% reward for recovering the stolen funds, but there has been no response from the alleged scammer.

Analytics firm LookOnChain urged users to exercise caution, advising against clicking on unfamiliar links or signing unknown transactions to avoid phishing attempts.

Alexander Stefanov