Recently, the popular crypto privacy protocol Railgun successfully thwarted Inferno Drainer’s latest effort to launder stolen funds. SlowMist’s anti-money laundering tracking system, MistTrack on X, reported that an attempt to launder over 174 ETH, valued at approximately $533,000, was intercepted by Railgun. As a result, the perpetrators were forced to return the stolen ETH to Inferno Drainer’s original wallet.
Inferno Drainer, known for being a notorious multichain crypto drainer, operates under a scam-as-a-service mode. The group deceived victims by utilizing sophisticated phishing websites to trick them into connecting their crypto wallets to the attackers’ network. Despite announcing the shutdown of its operations after siphoning off over $80 million from 5,000 victims via 689 phishing sites between November 2022 and November 2023, Inferno Drainer resumed its activities in May. The group cited “increased demand” and the exit of competitors like Pink Drainer as reasons behind its return to the illicit market.
Railgun has been identified as an alternative to Tornado Cash, a widely-used tool for laundering stolen funds by scammers, including Inferno Drainer. Following the US government’s sanctions on the crypto mixer, experts have highlighted Railgun as a viable alternative. Notably, crypto reporter Colin Wu mentioned that Railgun was being used by the notorious North Korean hacker group Lazarus Group instead of Tornado Cash. However, Railgun has refuted accusations of being used by North Korea and other US-sanctioned entities to launder stolen digital assets. The protocol emphasized its ‘Private Proofs of Innocence’ feature, which has been in place since January 2023, as a safeguard against unauthorized access.
Despite its inactivity for nearly six months, Inferno Drainer claimed to have drained over $125 million in crypto assets through “private operations.” The group justified its return to operation by pointing to the closure of major competitors and concerns over the reselling of their drainer, emphasizing the need to protect potential victims from being scammed or backdoored.
Railgun’s role in intercepting Inferno Drainer’s money laundering attempt highlights the importance of robust privacy protocols in safeguarding digital assets from malicious actors in the crypto space. As the landscape evolves, innovative solutions like Railgun continue to play a crucial role in deterring illicit activities and ensuring the security of the crypto ecosystem.
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