Venom Drain Scam: How 15,000 Investors Were Duped Out Of $27 Million

04/04/2023 02:27 • Crypto & Markets • 104 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

In recent times, the number of online investment scams has increased. Just when we thought we had seen it all, the latest web3 anti-fraud tool Scam Sniffer revealed that Venom Drain, a new scam as a service provider, has scammed a whopping 15,000 investors out of $27 million. Shockingly, the top five victims alone have lost a staggering $14 million. According to Scam Sniffer, this is one of the biggest scams they have ever seen.

How the Scam Operated

Venom Drain is responsible for creating 530 phishing websites that targeted over 170 projects such as Arbitrum, Blur, zkSync, Optimism, and MetaMask. The scam was elaborate and consumed so many victims. Investors would come across these fake websites through various channels such as social media platforms, forums, or Google ads. The websites appeared quite legitimate, with excellent graphics and convincing messages.
Once an investor clicked on any of these websites, they would be redirected to a fake DApp that requested access to their wallet seed phrase or private key. If an investor fell for this trap and shared their seed phrase or private key, their funds were automatically siphoned out of their accounts.

The Extent of the Scam

Venom Drain is one of the biggest scams to ever hit the web3 space. The scam has successfully defrauded 15,000 investors worth $27 million. The fact that the top five victims alone have lost $14 million is a staggering revelation. This scam is proof that investors need to remain vigilant when transacting online, especially when investing in a project.
Scammers are continually devising new ways to swindle their unsuspecting targets. The scams will keep coming, but investors must stay careful to ensure the safety of their assets.

How To Protect Yourself

There are several ways to stay safe and protect yourself from falling victim to such scams. First, understand how scammers operate and the usual tactics they use. If something looks too good to be true, it probably is. Stay away from “get rich quick” schemes and enticing offers that promise untold riches quickly.
Secondly, do your due diligence before investing in any project. Research and verify the authenticity of any company or project you intend to invest in. Always confirm if the website you’re on, or the project you’re investing in, is what it claims to be.
Thirdly, be wary of any website or DApp that requests your seed phrase or private key. Your seed phrase and private key should always remain confidential—never share them with anyone or enter them into any website or DApp unless you’re sure about its authenticity.

Conclusion

The Venom Drain scam is a classic reminder of the dangers of investing online without due diligence. As more people become interested in investing in digital assets, scammers will continue to take advantage of this interest to defraud unsuspecting investors. Investors must remain vigilant and follow the steps outlined above to avoid becoming victims of online investment scams.

FAQs

#Q1. Who is Scam Sniffer?

Scam Sniffer is a web3 anti-fraud tool that monitors the space for fraudulent activities to protect investors.

#Q2. What are some of the projects targeted by Venom Drain?

Venom Drain targeted over 170 projects such as Arbitrum, Blur, zkSync, Optimism, and MetaMask.

#Q3. How can I protect myself from online investment scams?

To protect yourself from online investment scams, do your due diligence before investing in any project, avoid “get rich quick” schemes, and stay away from websites or DApps that request your seed phrase or private key.

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