Blockaid fends off $700k in losses from new Angel drainer

Blockchain security platform Blockaid said it has detected a new Angel Drainer that is circulating in web3 protocols and attempting to steal user funds from wallets.

Angel Drainer is a complex of malicious code that targets crypto wallets and attacks decentralized finance protocols. Some believed the scam tool had stopped working, but Blockaid discovered an upgraded version that was released on August 31.

The new and improved Angel Drainer, codenamed AngelX, is back with improved stealth capabilities including improved obfuscation and new chain support for Tron (TRX) and The Open Network (TON).

AngelX has been added to more than 300 malicious decentralized applications less than a week after its launch, Blockaid said. Its improved design achieved a 90% evasion rate, beating most security vendors, Blockaid researcher Oz Tamir told crypto.news on September 5.

1/ 🚨 New Threat Alert: Angel Drainer releases AngelX, the most advanced wallet drainer ever on web3. Blockaid prevents over $700,000 in potential losses in just six days.

What you need to know 🧵 picture.twitter.com/zvUdNJju8z

— Blockaid (@blockaid_) September 5, 2024

Blockaid detects new threat as criminal activity declines

The arrival of AngelX likely means more crypto scams and digital asset phishing campaigns in the final months of the year, but a Chainalysis report suggests that illicit web3 activity will decline in the first half of 2024.

The blockchain research firm noted that there has been a 20% decrease in crypto crimes since the beginning of the year, but stolen funds have increased as malicious actors use better criminal tactics.

Cryptocurrency-stealing hackers have been seen using fake TikTok ads to deceive job seekers, with social media pages run by household names like McDonald’s and crypto-native firms like Polygon being hijacked to promote memecoin scams.

According to Crypto.news, even the X account belonging to former US President Donald Trump’s family members was attacked.

As hackers find new ways to bypass web3 security systems, industry participants have joined forces to fend off the cyber siege.

DeFi startups like SEAL 911, a cadre of white-hat security experts, have launched a first-responder Telegram bot to help protocols and attack victims, while giants like Coinbase have formed security alliances to build a database of information to prevent future incidents.