The Demise Of Inferno Drainer: Accomplice In $70 Million Fraud Uncovered

Thefts involving cryptocurrencies are frequent on decentralized finance (DeFi) systems and NFT initiatives. An investigation into a recent instance revealed that Inferno Drainer, a full-fledged scam service provider, assisted multi-chain schemes in exchange for a share of the stolen assets.

Scam Sniffer, a Web3 security company, revealed that Inferno Drainer has assisted in the theft of over $70 million in cryptocurrency from 103,767 victims on several blockchains.

Malicious actors can remove money from cryptocurrency wallets with the aid of “malware-as-a-service” called Inferno Drainer. It has enabled over 689 phishing websites since March 27th, targeting a number of well-known cryptocurrency and NFT initiatives.

Fast forward to today, Inferno Drainer has said it plans to shut down for good.

Inferno Drainer: Security Community’s Response

The Inferno Drainer account announced its decision to shut down in a Telegram post on November 26. It said that servers would continue to run to allow users to switch to another platform.

Security enthusiast and anonymous Twitter user 0xSaiyanGod stumbled into the fraud service when perusing the fraud Sniffer Telegram channel and came across one of its promoters.

After Saiyan informed the channel about the scammer, the security staff launched an inquiry. Using a Permit2 exploit, Scam Sniffer discovered a snapshot demonstrating a $103,000 drain transaction. Phishing schemes known as “permit2 exploits” rely on an abridged token approval procedure.

In order to fund its wallet draining script, the platform charges between 20% and 30% of the total value of stolen assets. According to blockchain security experts, Inferno Drainer’s “drainer fees” have brought in as much as $20 million.

According to Scam Sniffer’s disclosure on Friday, the malicious software vendor is purportedly associated with thousands of frauds that have stolen millions of pounds.

Through the examination of both on- and off-chain data on Ethereum, Arbitrum, BNB Chain, and additional chains, the security company discovered 4,888 victims who lost almost $6 million in NFTs and cryptocurrency combined.

BTCUSD trading at $37,394 on the 24-hour chart:

More than 220 projects, including Collab.Land, Blur, PEPE, zkSync, Sui, ChainGPT, Floki, LayeZero, Lens Protocol, MetaMask, Optimism, and others, have been the victim of these phishing websites.

Meanwhile, rumors surfaced earlier this week claiming a Blast protocol pioneer had connections to Inferno. However, after examining the on-chain data, Loch, a blockchain portfolio analytics company, revealed that there was no real connection between Inferno Drainer and the address of the Blast creator.

Crypto Fraud: The Global Multi-Billion Dollar Enterprise

Over the previous few months, scams as services have grown in difficulty within the cryptocurrency ecosystem. ZachXBT found “Monkey Drainer,” a comparable service, in October. Before going down in March, it took out of users’ accounts at least $1 million in Ethereum.

Victims all over the globe have fallen prey to crypto fraud, which has recently grown into a multibillion pound criminal specialization.

According to the Federal Bureau of Investigation, victims of crypto fraud in the United States alone reported losses of $2.6 billion last year, more than twice as much as the year before.

In contrast, a different analysis by TRM labs indicated that in the first quarter of 2023, hackers stole over $400 million in 40 separate crypto attacks. This represents a 70% decline from the same period in 2022.

Because victims are frequently too humiliated to report crimes to authorities, the actual extent of the losses is unknown.

Featured image from Pixabay

Our AI articles are NOT written by a real person and are provided for entertainment only. They may contain content which is inaccurate but we are hoping our AI bot, Rose, will become better over time. The AI category is the ONLY section of that has zero human input.

In 2021 TradeHost traded 7,937 Betfair UK, IE, US & AU horse racing and greyhound markets.

2022 saw TradeHost become even more profitable with 22,698 Betfair markets traded.

All trades and bets were streamed live on JuiceStorm TV which was was watched by 124,209 traders in 2022.

All results for the 30,635 Betfair markets traded are here and the charts are here.

Top 100 Comments on

Racing Traders has over 20,000 registered members and more join every day. Find out why with a free trial.

BetTrader from was the 1st application for Betfair & introduced the ladder UI. Invest £99 in yourself with a JuiceStorm EXCLUSIVE crypto only offer for a BetTrader lifetime license and no further payments.

Successful Betfair Traders have the simplest Betfair Trading systems. The difference is their selection process, experience and execution level. Get that difference for yourself with automated trading by TradeHost.
Leave A Reply
Comment Rules

  • Please show respect to the opinions of others no matter how seemingly far-fetched.
  • Abusive, foul language, and/or divisive comments may be deleted without notice.
  • Each JuiceStorm member is allowed two daily comments. Use them wisely.
  • Comments must be limited to the number of words displayed above the comment box.
  • Use branded capitalisation, eg. JuiceStorm, TradeHost, BetTrader, etc or John will get upset.
  • You agree that any comment you make may be used for marketing purposes by
  • You need more than 20 words? Click here for the largest Telegram community for Betfair Traders.