The notorious wallet drainer tool Pink Drainer announced it would shut down operations. According to a report by on-chain investigator ZachXBT, the developers of the cybercrime service shared their intent to wind down in a Telegram message.

Pink Drainer Exits

Pink Drainer, a notorious crypto wallet-draining service, is winding down its operations, according to a May 16 screenshot shared by blockchain sleuth ZachXBT.

The announcement follows after several involvements in the theft of millions of dollars in crypto assets. According to the developers, they decided to close down because they had reached their goals and it was time to retire.

"After this message's publication, we will begin winding down our infrastructure.

All stored information will be wiped and securely deleted," the developers stated. They also added that this would be their last message and there would be no future comebacks.

The Impact on Cybercrime

Pink Drainer has recently become a go-to vendor for cybercriminals. It offers a software tool designed to exploit technical vulnerabilities through social engineering tactics and phishing links.

With its tool, bad actors could carry out malicious schemes such as creating convincing phishing sites to deceive users into transactions that ultimately drained their wallets of crypto assets and NFTs.

Although the announcement has an undertone of sober reflections, it is worth noting that Pink Drainer has been linked to crypto theft worth nothing less than $85 million in the past year alone.

According to ScamSniffer data, the use of Pink Drainer negatively impacted over 21,000 victims in the past year.

Notable Incidents

One of the most notable scams of the infamous wallet drainer happened in March 2024. The scam focused on creditors of bankrupt crypto firms through email phishing, leading to thefts of at least $5 million.

That March incident not only showed the tool's ability to exploit high-profile vulnerabilities but also highlighted the level of financial damage it can inflict on any victim.

Implications for Cybersecurity

The shutdown of Pink Drainer is undoubtedly a big win in an ongoing fight against cybercrime.

For cybercriminals, the loss of such a prolific tool is poised to disrupt their activities, at least for now. However, the threat remains, even as alternative phishing-as-a-service platforms continue to exist.

Pink Drainer's announcement has been met with relief within the crypto community. Yu Xian, the founder of blockchain security firm SlowMist, wrote that over 19,800 victims were affected by Pink Drainer's phishing scheme.

The developers acknowledged that their retirement might not significantly disrupt the scene, as users are likely to transition to other similar services.