Closure of Pink Drainer and Federal Charges in Major Crypto Scams

By: Eva Baxter

Pink Drainer, a notorious crypto wallet-draining service, is winding down its operations. This comes after the service netted over $85 million from more than 21,000 victims through various fraudulent schemes, according to a Dune analytics dashboard by Scam Sniffer. Pink Drainer stated in a screenshot shared by blockchain sleuth ZachXBT that they have achieved their objectives and plan to eliminate all stored data securely.

Meanwhile, federal authorities have charged Chinese nationals Daren Li and Yicheng Zhang with orchestrating a $73 million "pig butchering" cryptocurrency scam. The term refers to a method where scammers bloat victims' confidence before taking their funds. This significant crackdown by the Department of Justice highlights ongoing efforts to prevent crypto scams and protect investors.

The retirement of Pink Drainer signals a temporary relief for the crypto community, but industry experts caution that users may transition to similar services. Blockchain security firm SlowMist's founder, Yu Xian, expressed hope in a tweet that law enforcement will soon catch up with these scammers.