The Venom Drain Scam: How It Scammed 15,000 Investors Out of $27 Million

04/04/2023 02:27 • Tech Trends • 164 views

According to reports, the Web3 anti fraud tool Scam Sniffer posted that Venom Drain, a new scam as a service provider, had scammed 15000 investors out of $27 million, with the top five victims losing $14 million. At present, the scam has created 530 phishing websites targeting over 170 projects such as Arbitrum, Blur, zkSync, Optimism, and MetaMask.

Venom Container has scammed $27 million from 15000 crypto investors

With the rise in popularity of cryptocurrencies, many fraudulent activities have emerged targeting unsuspecting investors. One such scam is the Venom Drain scam, which has defrauded more than 15,000 investors of $27 million.

What is the Venom Drain Scam?

Venom Drain is a scam as a service provider that has created 530 phishing websites targeting over 170 cryptocurrency projects such as Arbitrum, Blur, zkSync, Optimism, and MetaMask. The Venom Drain team has been successful in luring investors to these websites and convincing them to send their cryptocurrency to fake wallets.

How Did the Scam Work?

The Venom Drain team created fake websites that closely resemble the legitimate websites of popular cryptocurrency projects. These fake websites were promoted on social media platforms and other websites, making it easy for unsuspecting investors to fall victim to the scam.
Once the investors landed on these websites, they were presented with enticing offers such as airdrops, discounts, or early access to new tokens. In order to participate, investors were asked to send their cryptocurrency to a wallet address provided on the fake website.
Unfortunately, once the investors sent their cryptocurrency, it would be lost forever since the wallet addresses were controlled by the Venom Drain team and not the legitimate project teams.

How Many Investors Were Affected?

The Venom Drain scam has affected over 15,000 investors, with the top five victims losing $14 million. The scam has been successful in defrauding investors from all over the world, with many falling victim to the scam multiple times.

How to Protect Yourself from the Venom Drain Scam?

To protect yourself from falling victim to the Venom Drain scam, it is important to do the following:
– Always confirm the legitimacy of the website and wallet address before sending your cryptocurrency.
– Be wary of offers that are too good to be true or require you to send your cryptocurrency to an unknown address.
– Use a hardware wallet to store your cryptocurrency, as they are less susceptible to hacking attempts.
– Never give your private keys or seed phrases to anyone.

Conclusion

The Venom Drain scam is a warning for all cryptocurrency investors to be vigilant and always verify the legitimacy of websites and wallet addresses before sending their cryptocurrency. By taking the necessary precautions, investors can safeguard their investments and prevent falling victim to scams like Venom Drain.

FAQs

Q: What is a scam as a service provider?
A: A scam as a service provider is a company that provides fraudulent services to customers, such as creating fake websites to steal investors’ cryptocurrency.
Q: Can investors recover their lost cryptocurrency from the Venom Drain scam?
A: Unfortunately, it is highly unlikely that investors will be able to recover their lost cryptocurrency since the wallet addresses were controlled by the Venom Drain team.
Q: Are there other scams similar to Venom Drain?
A: Yes, there are many other scams that target cryptocurrency investors, such as phishing attacks, fake ICOs, and pyramid schemes.

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