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- 1 The malicious script stole over $59M in crypto from over 63k users in the past three quarters- Scam Sniffer.
- 2 Over 10,000 websites have been linked to the drainer’s wallets- Reports.
- 3 There were about 60% more cryptocurrency hacks and scams in the third quarter of 2023- Chainalysis.
As per the reports of Scam Sniffer, a malicious script wiped out around $59 Million in cryptocurrencies from over 63k users in the past three quarters. It further notes that more than 10,000 websites are linked to the drainer’s wallets. The surge in the activities was observed in May, June, and November.
These advertisements were of crypto or NFT airdrops while some were of popular blockchain ecosystems.
The malicious ads evaded audits using regional targeting and page flipping, complicating the evaluation process. A test of X’s ad in the feed revealed nine phishing ads, with more than 60% utilizing this wallet drainer.
Ledger, a leading hardware crypto wallets provider, cautioned its clients earlier this month about the risks of using dapps. The cause was an identified supply chain assault.
Malicious javascript code was introduced into the Ledger dapp Connect Kit library, which allows web3 apps to interface with Ledger wallets.
The data on Blockchain reveals that MS Drainer’s activity, one of its Ethereum-chain victims, lost around $24 million of cryptocurrency, while other notable cases involve victims losing between $440k and $1.2 million.
In Google Searches, MS Drainer is promoted using malicious ads and keywords related to DeFi platforms like Zapper, Lido, Stargate, Defillama, Orbiter Finance, and Radiant.
Most scam advertisements on X are posted from accounts with a blue tick and verified solely by the ‘X’ platform policies.
Chanalysis Report on Crypto Scams 2023
While revenue from cryptocurrency scams decreased by about $3.3 Billion in the first half of 2023 compared to 2022, reaching just over $1.0 Billion, ransomware remained a chronic problem, according to Chainanalysis.
Compared to the prior year, ransomware attackers were able to extract almost $175.8 Million more during this time.
Meanwhile, there were about 60% more cryptocurrency hacks and scams in the third quarter of 2023 than in the same period in 2022, resulting in around $686 Million being lost to fraudulent activity.
Hacken’s View on Crypto Scams- 2023
Based on a recent survey, investors have identified cryptocurrency rug pulls as the most accessible deception to fall for. According to Hacken’s most recent survey, most cryptocurrency frauds have recognizable characteristics that make them easy to identify.
Based on the recent wave of cryptocurrency breaches, the blockchain auditor study evaluates the security protocols of the impacted projects. It noted in its report that many affected projects did not continue with audits, and some audits did not yield any supporting data.
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
