Blockaid Fends Off $700k In Losses From New Angel Drainer

Blockchain security platform Blockaid said it detected a new Angel Drainer prowling web3 protocols and trying to steal user funds from wallets.

Angel Drainer is a malicious code complex targeting crypto wallets and attacking decentralized finance protocols. Some believed the scam tool had stopped operating, but Blockaid discovered an upgraded version released on Aug. 31.

The new and improved Angel Drainer, codenamed AngelX, returned with improved thieving capabilities like advanced cloaking and new chain support for Tron (TRX) and The Open Network (TON).

Blockaid said AngelX was added to over 300 harmful decentralized apps in less than a week of its launch. Its upgraded design has bypassed most security vendors, scoring a 90% evasion rate, Blockaid researcher Oz Tamir told crypto.news on Sept. 5.

AngelX’s arrival likely means more crypto scams and digital asset phishing campaigns in the year’s final months. However, a Chainalysis report suggests illicit web3 activity declined in H1 2024.

The blockchain research firm noted a 20% drop in crypto crime year-to-date, but stolen funds increased as bad actors leveraged better criminal tactics. 

Hackers pilfering cryptocurrencies have been spotted using fake TikTok ads to deceive job hunters. Social media pages managed by household names like McDonald’s and crypto-native firms like Polygon were hijacked to promote memecoin scams.

Even X accounts owned by the family members of former U.S. President Donald Trump were not spared by the hacking onslaught, as crypto.news reported.

As hackers find new methods to circumvent web3 security systems, industry participants have joined hands to ward off the cyber siege.

DeFi initiatives like SEAL 911, a roster of white hat security veterans, launched a first-responder Telegram bot to aid protocols and hack victims. Giants like Coinbase have also formed security alliances to create an information database to prevent future incidents.