Crypto Wallet Suffers $32 Million Loss in spWETH Due to Phishing Scam

On September 28, the Web3 anti-scam platform ScamSniffer reported that a wallet holding 12,083 spWETH, worth $32.43 million, got drained.

This incident occurred at 06:15 UTC after the wallet owner signed a “permit” phishing signature.

Who Owns the Wallet Behind the $32 Million Phishing Scam?

The wallet, flagged by Arkham Intelligence, is suspected to belong to Shixing Mao (Discus Fish), co-founder of F2Pool and Cobo, although Arkham’s AI-based identification holds low confidence. Despite the loss, Arkham’s data shows that the wallet still holds various cryptocurrencies valued at approximately $5.44 million at the time of writing.

Crypto investigator ZachXBT added that the wallet’s owner has historically conducted significant transactions with another high-profile account.

“Victim and czsamsun on Debank have done 9 figures in transfers with each other, so seems likely it’s the same entity,” ZachXBT remarked.

Read more: 15 Most Common Crypto Scams To Look Out For

The phishing attack was linked to the notorious Inferno Drainer, a scam-as-a-service platform that exploits users by creating fake decentralized finance (DeFi) applications. According to ScamSniffer’s report, Inferno Drainer has stolen over $215 million from more than 200,000 victims. The group tricks users into signing fraudulent transactions that give the scammers control of their wallets.

Inferno Drainer initially shut down operations in late 2023. However, it resumed in May 2024 with enhanced capabilities, supporting 28 blockchains and hundreds of decentralized applications. 

Phishing scams like this one continue to plague the crypto space. In Q1 2024, ScamSniffer reported that over $173 million was lost to various phishing operations. Wallet drainers, such as Inferno Drainer, operate like organized syndicates, constantly changing and replacing older groups.

Read more: Crypto Scam Projects: How To Spot Fake Tokens

The Federal Bureau of Investigation also reported that phishing-related losses accounted for over $9.6 million in 2023. As phishing tactics become more sophisticated, awareness and security measures are crucial to safeguard assets.