Cryptohack Roundup: $206M Gala Games Exploit

Hacker exploits Gala Games, Pump.fun hacked, arrests made, Pink Drainer shut down, U.S. House approves crypto bill, man pleads guilty, tech coalition formed.

This week, a series of cybersecurity incidents rocked the digital asset world. Gala Games and Pump.fun fell victim to hackers, while alleged pig-butchering scammers, Incognito admin, and illicit banking racketeers were apprehended. Pink Drainer was shut down, a crypto bill was approved by the U.S. House, a man pleaded guilty to wire fraud, and tech companies joined forces to fight scams.

Gala Games was exploited by a hacker who minted 5 billion crypto tokens worth $206 million and returned $22.5 million the next day. Co-founder Eric Schiermeyer, known as "Benefactor," disclosed the incident and took steps to prevent future breaches. Pump.fun also faced an exploit, resulting in the misappropriation of 12,300 SOL, valued at $1.9 million. The platform paused operations and upgraded contracts to enhance security.

Law enforcement arrested Daren Li and Yicheng Zhang for laundering over $73 million through U.S. financial institutions. The duo allegedly led an international syndicate involved in pig-butchering crypto investment scams. Another arrest was made in connection with Incognito Market, an illegal dark web marketplace for drug sales. The owner, Rui-Siang Lin, faces charges including money laundering and narcotics conspiracy.

Pink Drainer, a wallet drainer service, was shut down for facilitating cybercriminals in stealing crypto assets through social engineering and phishing tactics. The U.S. House approved a crypto bill to establish a new legal framework for digital currencies, while Thomas John Sfraga pleaded guilty to wire fraud charges. Chinese police dismantled a $1.9 billion underground banking operation involving the Tether stablecoin.

Tech companies like Coinbase, Tinder, Meta, and others formed the Tech Against Scams coalition to combat online fraud and financial schemes. The coalition focuses on sharing best practices and threat intelligence to protect consumers from various scams. This week's cybersecurity incidents highlight the ongoing battle against cyber threats in the digital asset world.

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