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FreeDrain Campaign: A Global Cryptocurrency Phishing Operation
Cybersecurity researchers have uncovered a large-scale phishing campaign targeting cryptocurrency users worldwide
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FreeDrain Campaign: A Global Cryptocurrency Phishing Operation
Cybersecurity researchers have uncovered a large-scale phishing campaign targeting cryptocurrency users worldwide. Dubbed FreeDrain, the operation has been actively draining digital wallets through sophisticated search engine manipulation and phishing tactics for several years.
What Is the FreeDrain Campaign?
According to researchers at SentinelOne and Validin, FreeDrain is an “industrial-scale” phishing campaign that leverages:
Search engine optimization (SEO) manipulation
Free-tier web hosting platforms like GitHub Pages, GitBook, and Webflow
Layered redirection techniques to lead users to fake wallet sites
Once there, unsuspecting victims are asked to enter their seed phrases, allowing attackers to steal funds immediately.
How It Works
Victim searches for wallet-related queries (e.g., “Trezor wallet balance”).
SEO-manipulated results lead them to lure pages hosted on trusted platforms.
Landing pages display a fake static image of a real wallet interface.
Clicking prompts redirects them to a phishing page that:
Steals seed phrases
Drains funds from the wallet automatically
Over 38,000 subdomains have been tied to FreeDrain infrastructure, hosted via services like Amazon S3 and Azure Web Apps.
Use of AI and Spamdexing
Researchers believe large language models (LLMs) like OpenAI’s GPT-4o are being used to generate realistic-looking content at scale. Additionally, spamdexing (posting spam comments on weak websites) is used to improve lure page rankings on Google and Bing.
Attribution and Infrastructure
Attackers are likely operating in the Indian Standard Time (IST) time zone.
GitHub commit timestamps show a weekday, 9-to-5 pattern.
The network is resilient and able to quickly rebuild after takedowns.
Related Attacks: Inferno Drainer & Facebook Malvertising
Inferno Drainer
A separate phishing campaign tracked by Check Point Research uses Discord servers and stolen OAuth2 flows to target Web3 users:
Over 30,000 wallets compromised between September 2024 and March 2025
More than $9 million in losses
Despite claims of shutdown, Inferno Drainer remains active
Facebook Ad Malware
Bitdefender found malicious Facebook ads impersonating exchanges like Binance and Bybit:
Ads redirect to fake download pages
Malware collects system data silently
Detects sandboxes and security environments to evade analysis
Why It Matters
These threats highlight a new phishing blueprint:
Leverages trusted platforms
Uses AI for scale and realism
Operates via cloud infrastructure and redirection layers
Harder to detect and shut down
Protection Tips for Users
Never enter seed phrases into any website
Bookmark official crypto wallet URLs
Be cautious of links from search engines or Discord
Use browser extensions that flag phishing attempts
Monitor wallets with anti-drainer tools
Conclusion
FreeDrain represents a shift in phishing — away from email-based scams toward search-based deception and AI-powered content. The crypto community and platform providers must step up countermeasures to protect user funds from these increasingly elaborate operations.