Crypto Wallet Draining Scam Registers as Official Business in the UK 🕵️‍♂️💼

The group responsible for a scam-as-a-service involving a crypto wallet has officially registered as a private business in the UK, according to a tweet made yesterday by blockchain.

Scam-as-a-Service Provider’s Registration as UK Business Raises Concerns’ 👀🔍💼

📅 Last updated: February 23, 2024 12:29 EST | ⏱ 2 min read ⌛

In a shocking development, a crypto wallet draining scam-as-a-service has registered as a private business in the UK. This news, revealed by blockchain security company Certik in a tweet, highlights the audacity of the scammers behind the notorious Nova wallet drainer app.

Certik’s tweet directed us to a British government page, where “CryptoGrab” is listed as an incorporated company since January 17, 2024. Often referred to as “wallet drainers,” these applications are designed to siphon off large amounts of cryptocurrency by targeting unsuspecting victims through phishing sites.

🏦🔍 Despite the illicit nature of their operations, CryptoGrab proudly claims to be an official company. In a blog post on their website, they even flaunt a scan of their Companies House registration. This government agency oversees business registrations in the UK.

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An affiliated Telegram channel shamelessly markets their software as a drainer that “steals ERC20 tokens” and “steals ETH.” According to a report by Certik, approximately 30% of the stolen funds are charged as a fee by the company. The report further reveals that over 7,000 transactions have passed through the wallet drainer’s smart contracts.

🔒⚠️ While Companies House keeps a record of registered companies, it lacks the authority to investigate suspected fraudulent activities. This means that while CryptoGrab may have a legal status, it doesn’t necessarily imply legitimacy.

Draining Scams In The News: The Growing Threat 😱💰

2023 witnessed an alarming rise in the prevalence of crypto wallet draining scams. According to a report by Scam Sniffers, these scams resulted in the loss of $300 million from over 324,000 users. The report also suggests that wallet draining activities continue to escalate.

Among the top-ranked draining apps, Inferno Drainer claimed the first spot by stealing a staggering $81 million from 134,000 users. However, Inferno ceased its scam operations by late November 2023. Following closely behind were MS and Angel Drainer, with $59 million and $20 million stolen from 63,000 and 30,000 victims, respectively. Other names like Monkey, Venom, and Pink Drainer also made dishonorable appearances on this notorious list.

In a shocking revelation, Scam Sniffer tweeted that wallet drainers managed to pilfer a jaw-dropping $4 million on Solana in just one month!

Wallet Drainer Apps and Their Ill-Gotten Gains

Recognizing the severity of the issue, Singaporean authorities issued a joint statement warning about the growing threat of wallet drainer activities. This proactive response sends a signal that more countries may also expand their focus on combating this form of cyber fraud.

The outlook for this year suggests that wallet drainer attacks will escalate further. Recently, a phishing campaign targeted users with deceptive communications from prominent Web3 brands like WalletConnect, Token Terminal, and Blocking.net. This insidious scheme resulted in a massive theft of at least $580,000.

In another shocking incident, the infamous crypto phishing group, Angel Drainer, managed to steal a whopping $400,000 from 128 wallets within a single day this month. These incidents highlight the urgent need for increased awareness and enhanced security measures to protect vulnerable crypto holders.

🔒💡 Understanding the danger posed by wallet drainer scams is crucial for anyone involved in the crypto space. By staying informed and practicing good security habits, users can mitigate the risk of falling victim to such malicious schemes.

🔍 Q&A: What You Need to Know About Wallet Draining Scams

Q: How do wallet drainers target their victims? A: Wallet drainers typically operate through phishing sites that imitate legitimate platforms. These sites trick users into connecting their wallets and transferring funds, ultimately leading to the theft of their cryptocurrency.

Q: Are wallet draining activities limited to specific cryptocurrencies? A: No, wallet drainers can target a wide range of cryptocurrencies, including popular ones like ERC20 tokens and ETH.

Q: Can registered companies like CryptoGrab be held accountable for their scams? A: While their registration grants them a legal status, government agencies like Companies House lack the authority to investigate and prosecute suspected fraudsters. It’s essential to exercise caution and due diligence when dealing with any company, especially in the crypto industry.

Q: How can users protect themselves from wallet draining scams? A: Users can reduce the risk of falling victim to such scams by verifying the legitimacy of websites and applications before connecting their wallets. Additionally, using hardware wallets and enabling two-factor authentication are recommended best practices to enhance security.

📚 Further Reading and Resources

To learn more about crypto wallet draining scams and how to protect yourself, check out these helpful resources:

1. How to Keep Your Crypto Wallet Safe
2. 10 Most Common Crypto Scams and How to Avoid Them
3. The Rise of Phishing Attacks in the Crypto World
4. Best Security Practices for Crypto Investors
5. Crypto Fraud: Recognizing and Reporting Suspicious Activity

💭💬 Are you surprised by the audacity of CryptoGrab registering as an official business? Share your thoughts and experiences with wallet drainer scams in the comments below. Let’s work together to raise awareness and protect the crypto community from these malicious actors.

Don’t forget to share this article on your favorite social media platforms to help spread the word and keep others informed about the growing threat of wallet drainers! 📲💪

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