UK Government Gives Go-Ahead to Controversial Crypto Theft Tool Developer

Crypto Grab, a software developer infamous for crafting phishing tools, has been officially sanctioned as a business entity in the United Kingdom. According to CertiK, a blockchain security firm, this registration coincides with allegations surrounding the company’s software, Nova Drainer, which purportedly facilitates illicit activities by targeting cryptocurrency assets through phishing schemes.

Under the legal guise of Crypto Grab Limited, the company contends that its business registration bolsters its credibility, enabling the acquisition of Extended Validation Certificates (EV SSL certificates). These certificates play a pivotal role in online businesses by bolstering website security and establishing trustworthiness through validation of the legal entity operating the site.

The repercussions of wallet drainers

Wallet drainers, exemplified by Nova Drainer, represent a facet of the Web3 protocol designed to exploit the trust of cryptocurrency users, enticing them to visit malicious websites where their digital assets become vulnerable to theft. Over the past year, such schemes have resulted in substantial financial losses, with estimates from security platform Scam Sniffer indicating over $300 million in cryptocurrency stolen through these methods.

Crypto Grab’s marketing approach unabashedly highlights the capabilities of its software, touting features that facilitate the theft of ERC20 tokens and Ether (ETH) directly from victims’ wallets. Despite the nefarious nature of its products, Crypto Grab leverages its incorporation certificate as a badge of legitimacy, claiming it facilitates partnerships with major industry players.

Navigating regulatory hurdles and scrutinizing company practices

The registration of Crypto Grab Limited with the UK’s Companies House has prompted closer scrutiny of the company’s activities and the authenticity of its director, Bradley Robertson, purportedly a pseudonym according to CertiK. However, Companies House is limited in its ability to verify submitted information during the registration process, conducting only basic checks to ensure document completeness.

CertiK’s investigation into Nova Drainer has uncovered evidence linking the software to phishing operations, identifying contract addresses associated with the scam. These findings indicate that the software siphons off a portion of stolen funds as a service fee, with numerous transactions traced back to these illicit activities.

In response to potential fraudulent registrations, Companies House has outlined procedures for public complaint submission, although it lacks the authority to conduct formal fraud investigations. Instead, suspicious activities are referred to the police, while victims are urged to report incidents to the Action Fraud hotline.