The Pink Drainer hacker group lost 10 Ethers worth $30,000 after falling for their own trick, “address poisoning.” This is when the cryptocurrency is sent to a wallet whose name differs by only a few characters.

The Pink Drainer bug was reported by analytics platform MistTrack. The Pink Drainer incident showed that such attacks pose a danger even to those who commit fraud themselves.

Typically, attackers send a small amount of cryptocurrency to the victim from a similar address. The goal of the attack is to trick the victim into accidentally sending funds to the scammer’s wallet. Attackers use bots to create addresses with similar first and last characters in the hopes that the victim will copy the fraudulent address instead of the original and send a large amount to it.

Therefore, traders and investors are advised to double-check addresses before making transactions to avoid becoming victims of fraud, warns MistTrack. The Pink Drainer incident occurred just a month after the group announced its resignation. Since July 2023, these hackers have managed to carry out their plan to steal $85 million in cryptocurrency.

There are cases where hackers themselves suffer losses while trying to steal from users. In 2022, an attacker attempted to hack the Rainbow Bridge, but the attack failed and the hacker lost 5 ETH.