- In a significant development, the crypto privacy protocol Railgun has successfully blocked an attempt by Inferno Drainer to launder stolen funds.
- The thwarted attempt involved over 174 ETH, worth approximately $533,000, which were subsequently returned to their original wallet.
- This incident underscores ongoing challenges in the crypto space regarding security and fraudulent activities.
Railgun blocks Inferno Drainer’s latest attempt to launder stolen funds, highlighting ongoing security challenges in the crypto space.
Railgun Intercepts Laundering Attempt by Inferno Drainer
Railgun, a well-known crypto privacy protocol, has effectively intercepted an effort to launder stolen funds by the notorious multichain crypto drainer, Inferno Drainer. According to a report from MistTrack, SlowMist’s anti-money laundering tracking system, the interception involved over 174 ETH, valued at about $533,000, which were forced to be returned to the originating wallet.
Inferno Drainer’s Return to Scamming Activities
Despite initially announcing the cessation of operations after allegedly draining over $80 million from around 5,000 victims through 689 phishing websites, Inferno Drainer resumed its activities in May. This resurgence was reportedly due to increased demand and the exit of major competitors like Pink Drainer. The group has claimed that during their so-called “private operations,” they have drained over $125 million in crypto assets.
Railgun: An Alternative to Tornado Cash?
The use of Tornado Cash, a popular crypto mixer, has been prevalent among scammers, including Inferno Drainer, for laundering stolen funds. However, following the US government’s imposition of sanctions on Tornado Cash, Railgun has been identified as a potential alternative. Notably, crypto reporter Colin Wu cited FBI reports from January 2023, accusing Railgun of being used by the notorious Lazarus Group for laundering over $60 million worth of ETH stolen during the Harmony Bridge heist in 2022.
Railgun’s Defense Against Allegations
In response to these accusations, Railgun has categorically denied being used by North Korea or any other sanctioned entities for laundering stolen digital assets. The organization stressed that such claims are “false reporting” and highlighted their ‘Private Proofs of Innocence’ feature, which has been operational since January 2023, effectively blocking malicious access to their system.
Conclusion
The recent events involving Railgun and Inferno Drainer illustrate the persistent security issues within the cryptocurrency industry. While Railgun’s success in intercepting the laundering attempt is a positive development, it also underscores the need for continuous vigilance and innovation in combating fraudulent activities. As the crypto landscape evolves, both security protocols and regulatory measures must advance to protect users against increasingly sophisticated threats.
