Inferno Drainer Shuts Down: Crypto World Rejoices as Notorious Wallet Drainer Ceases Operations After $80M+ Theft

In a surprising turn of events that has sent ripples of relief through the cryptocurrency community, Inferno Drainer, one of the most infamous and widely used wallet-draining services, has announced its immediate shutdown. For those unfamiliar with the darker corners of the crypto world, Inferno Drainer wasn’t your friendly neighborhood DeFi protocol. It was a ‘malware-as-a-service’ operation that enabled malicious actors to pilfer funds from unsuspecting crypto wallets on an industrial scale. Think of them as the grim reapers of the digital asset realm, facilitating theft in exchange for a hefty cut of the ill-gotten gains – typically 20% to 30% of the stolen loot.

This news, initially surfacing on Scam Sniffer’s Telegram channel, marks a significant victory in the ongoing battle against crypto scams and theft. But before we pop the champagne, let’s delve into what Inferno Drainer was, the staggering scale of its operations, and what its shutdown means for the future of crypto security.

What Exactly Was Inferno Drainer? The Devil in the Details

Inferno Drainer operated as a sophisticated service catering to cybercriminals. Their business model was chillingly simple and effective:

• Phishing Kits on Demand: They provided ready-to-deploy phishing kits designed to mimic legitimate crypto platforms and NFT projects.
• Website Cloning Expertise: They specialized in cloning websites, making it incredibly difficult for even savvy users to distinguish between the real deal and the fake trap.
• Profit Sharing Model: Collaborators, the actual scammers using the service, would lure victims to these fake websites. Once a victim interacted and unwittingly approved malicious transactions, Inferno Drainer’s software would swiftly drain the wallet. The profits? Split 80/20 or 70/30, with the larger share going to the collaborator and Inferno Drainer taking their cut for providing the infrastructure and malware.

Essentially, Inferno Drainer lowered the barrier to entry for crypto theft, providing the tools and expertise for anyone with malicious intent to become a wallet drainer. This ‘democratization’ of crypto crime led to a surge in attacks and a massive accumulation of stolen funds.

The Devastating Toll: Numbers That Speak Volumes

Earlier this year, Web3 security firm Scam Sniffer sounded the alarm, reporting that Inferno Drainer had already targeted approximately 5,000 individuals, causing losses nearing $6 million. Disturbing, yes, but it turned out to be just the tip of the iceberg.

#ScamSniffer Alert: Inferno Drainer, a wallet drainer service, has targeted at least 4,888 victims and stolen approximately $5.9 million in assets in the past four months.

Inferno Drainer is a wallet drainer service that emerged around March 27, 2023. It is used by phishing scammers to steal assets from crypto users' wallets.

Full Report: https://t.co/TjBQx7yMnM pic.twitter.com/cQZlY0187X

— Scam Sniffer (@realScamSniffer) May 19, 2023

Fast forward to recent revelations from Scam Sniffer, and the true scale of Inferno Drainer’s impact becomes horrifyingly clear:

• Over 103,767 Victims: A staggering number of individuals fell prey to scams facilitated by Inferno Drainer.
• More Than $70 Million Stolen: This is the confirmed amount drained across various blockchains.
• Potentially $80 Million+: Even Inferno Drainer’s own admin boasts of a higher figure, suggesting the actual losses could be even greater.

#ScamSniffer Alert: Inferno Drainer is officially shutting down.

Since March 2023, Inferno Drainer has stolen approximately $70 million from 103,767 victims.

Let's take a look at the rise and fall of Inferno Drainer. pic.twitter.com/z9cBQx14tG

— Scam Sniffer (@realScamSniffer) November 27, 2023

If we take the more conservative $70 million figure, and consider Inferno Drainer’s cut of 20-30%, they themselves raked in an estimated $14 to $21 million in illicit profits in just about half a year. A truly devastating and lucrative criminal enterprise.

See Also: North Korean Hackers Pose as South Korean Government Officials to Steal Crypto

Inferno Drainer Pulls the Plug: Why Now?

On November 26th, a chillingly nonchalant announcement appeared on Inferno Drainer’s Telegram channel: they were shutting down. Servers would remain active for a short period to allow users (their criminal collaborators) to transition to other platforms.

The tone of the announcement was, as expected from cybercriminals, laced with dark humor and a disturbing lack of remorse:

“The end of the craziest journey. Inferno drainer is shutting down. It has been a long ride with all of you and we’d like to thank you from heart. Unfortunately, nothing lasts forever. After +80 millions of $ drained, we decided to shut down, it’s time for us to move on. […] A big thank to everyone who has worked with us such as Drakan and every other customers, we hope you can remember us as the best drainer that has ever existed and that we succeeded in helping you in the quest of making money.”

The exact reasons behind the shutdown remain speculative. It could be due to increased scrutiny from law enforcement, internal conflicts, or simply the operators deciding to cash out and disappear. Whatever the reason, the crypto community is breathing a collective sigh of relief.

Unmasking the Threat: How Inferno Drainer Was Exposed

The fight against Inferno Drainer wasn’t without its heroes. Security enthusiast 0xSaiyanGod stumbled upon the service while monitoring the Scam Sniffer Telegram channel and identified a promoter. This initial discovery prompted Scam Sniffer to launch a deeper investigation.

Their investigation uncovered a crucial detail: Inferno Drainer heavily utilized “Permit2 exploits.” These exploits leverage a streamlined token approval process (Permit2) to trick users into signing transactions that grant unlimited access to their wallets. Scam Sniffer even managed to capture a snapshot of a staggering $103,000 drain transaction facilitated by this exploit.

Is This Really the End? What Crypto Users Need to Know

While the shutdown of Inferno Drainer is undoubtedly good news, it’s crucial to understand that this doesn’t eliminate the threat of wallet drainers. The landscape of crypto scams is constantly evolving, and other similar services are likely to emerge or already exist.

Here’s what you need to take away from this:

• The Fight Continues: Inferno Drainer’s demise is a victory, but vigilance is paramount. Scammers will adapt and find new methods.
• OPSEC is Your Best Defense: Basic Operational Security practices are more critical than ever. Be extremely cautious when interacting with links, websites, and requests for wallet connections.
• Question Everything: If something seems too good to be true, or if you feel pressured to act quickly, it’s likely a scam.
• Verify Website Authenticity: Always double-check the URL and look for security indicators (like HTTPS and a padlock icon) before connecting your wallet or entering sensitive information.
• Revoke Unnecessary Permissions: Regularly review and revoke token approvals you’ve granted to decentralized applications, especially if you no longer use them.

Meanwhile, in a curious side note to this story, rumors circulated linking a Blast protocol pioneer to Inferno Drainer. However, blockchain analytics firm Loch debunked these claims after examining on-chain data, confirming no connection between the Blast creator’s address and Inferno Drainer.

There are rumors circulating that Blast founder Pacman is linked to Inferno Drainer.

We took a look at the onchain data and found no evidence to support this claim.

Here's what we found 👇 pic.twitter.com/6nQY2p6n12

— Loch (@loch_chain) November 26, 2023

A Silver Lining, But No Time for Complacency

The shutdown of Inferno Drainer is a positive development in the ongoing struggle against crypto crime. It demonstrates that even sophisticated and large-scale operations can be disrupted. However, it’s not a reason to become complacent. The crypto space remains a target-rich environment for scammers, and new threats will inevitably emerge. Staying informed, practicing robust security habits, and supporting security initiatives like Scam Sniffer are crucial for protecting yourself and the broader crypto community. Let Inferno Drainer’s downfall serve as a stark reminder: in the world of crypto, vigilance is the ultimate safeguard.