New Crypto Threat: AngelX Targets Web3 Wallets and DeFi Protocols

Blockchain security platform Blockaid has detected a new threat known as Angel Drainer, targeting web3 protocols and attempting to steal user funds from wallets.

Angel Drainer is a complex malicious code aimed at crypto wallets and decentralized finance protocols. Some believed the scam tool had ceased operating, but Blockaid discovered an upgraded version released on August 31.

The new version, codenamed AngelX, has returned with enhanced capabilities such as advanced cloaking and new chain support for Tron and The Open Network (Toncoin).

Blockaid reported that AngelX was integrated into over 300 harmful decentralized apps within a week of its launch. Its upgraded design has bypassed most security vendors, achieving a 90% evasion rate, according to Blockaid researcher Oz Tamir.

New Threat Alert: Angel Drainer just released AngelX, the most sophisticated wallet drainer to ever hit web3. In just six days, Blockaid has already prevented over $700,000 in potential losses.

AngelX’s emergence likely signals an increase in crypto scams and digital asset phishing campaigns in the final months of the year. However, a report from Chainalysis suggests that illicit web3 activity declined in the first half of 2024.

The blockchain research firm noted a 20% drop in crypto crime year-to-date, but stolen funds have increased as bad actors employ more sophisticated tactics. Hackers have been observed using fake TikTok ads to deceive job hunters. Social media pages managed by well-known brands like McDonald’s and crypto firms like Polygon have been hijacked to promote memecoin scams.

Even X accounts owned by family members of former U.S. President Donald Trump were not spared in the hacking spree.

As hackers develop new methods to bypass web3 security systems, industry participants are collaborating to combat the cyber threats. DeFi initiatives like SEAL 911, comprised of white hat security veterans, have launched a first-responder Telegram bot to assist protocols and hack victims. Major players like Coinbase have also formed security alliances to create an information database to prevent future incidents.

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