Halloween in Crypto: DNS Attack on 12 DeFi Sites, Chainalysis Incident, and Infinity Ground's 587% Surge
Redakcja CryptoPulsar ·
A DNS attack hit at least 12 DeFi websites, and Blockaid identified the Step Drainer toolkit. CoinTelegraph reports an incident at Chainalysis, while AI analysis flags Infinity Ground as suspicious after a 587.7% 7-day surge. Users should avoid connecting wallets and signing transactions until the situation is clarified.
⚠️ WARNING
The DNS attack affected at least 12 DeFi websites, and Blockaid identified the Step Drainer toolkit on them. Teams are warning against connecting wallets and signing transactions. At the same time, Infinity Ground is showing signs of manipulation after a 587.7% 7-day surge.
On Friday, October 31, 2026, the crypto ecosystem is facing parallel threats. A DNS attack hit at least 12 DeFi websites, and Blockaid researchers identified the Step Drainer toolkit on them, which can drain assets after malicious transactions are signed. At the same time, CoinTelegraph reported a cybersecurity incident at Chainalysis. In the altcoin market, CryptoPulsar AI analysis flagged Infinity Ground as highly suspicious after a price jump of 78.7% in 24 hours and 587.7% in 7 days. Below we show what is known based on available data, how to recognize red flags, and how to protect your portfolio.
What Happened: DNS Attack on DeFi and Chainalysis Incident
According to Crypto.news, a DNS attack affected at least 12 DeFi websites. The Blockaid team identified the Step Drainer toolkit on the attacked pages. Project teams are warning users against connecting wallets and signing transactions until the situation is clarified.
The attack is taking place on Halloween, October 31, 2026. The Crypto.news report appeared at 10:00 UTC, and CoinTelegraph's report about the Chainalysis incident at 10:22 UTC. The available material did not provide technical details or the scale of the Chainalysis incident.
This is a reminder that even specialized analytics firms and DeFi protocols are not immune to security incidents. The fact that Blockaid recognized Step Drainer on multiple sites means that users can lose funds if they sign a transaction on the affected pages.
Infinity Ground: 587.7% Surge and Manipulation Signals
In parallel with the infrastructure attacks, CryptoPulsar AI analysis flagged Infinity Ground (AIN) as suspicious. The risk score is 9 out of 10, potential only 2 out of 10, and the Suspicious flag is True.
The data show an extreme price increase: 78.7% in 24 hours and 587.7% in 7 days, with a market cap of $49.3 million. Such a move, without confirmed fundamentals, active users, and regular developer activity, bears the hallmarks of manipulation or a pump-and-dump scheme.
The base scenario assumes a sharp correction to the $0.09 to $0.14 range, a decline of 47 to 66 percent. In the bearish scenario, the sell-off could deepen to $0.03 to $0.06 on profit-taking and supply unlocks. The bullish scenario is unlikely and is limited to a short-term breakout above the ATH of $0.271 toward $0.30 to $0.35, followed by a violent sell-off.
For comparison, the same AI analysis set for Wrapped Alphabet xStock shows a risk of 7 out of 10 and potential of 5 out of 10, with no suspicious project flag. The price is $281.95, market cap is about $415,000, and 24-hour volume is $529,000. Scenarios assume consolidation between $260 and $300, a bullish rebound to $320, then $340 to $360, and in the bearish version a drop to $230, or even $200.
| Project | Risk | Potential | Suspicious |
|---|---|---|---|
| Infinity Ground | 9/10 | 2/10 | Yes |
| Wrapped Alphabet xStock | 7/10 | 5/10 | No |
Volume Anomalies: PEPE, XAUT, and RAIN Decline
CryptoPulsar market alerts detected unusual volume activity on several assets. For PEPE, 24-hour volume ranged from 46% to 54% of market cap in successive readings. The latest measurement shows 54% of market cap.
Even more concerning is the volume of Tether Gold (XAUT). Alerts show values from 4601% to 5040% of market cap. The latest reading is 5040%. Such an extreme ratio indicates unusual trading activity, which the system flagged as unusual activity detected.
Meanwhile, Rain (RAIN) recorded a decline of 8.3%, then 8.4% over 24 hours. The price is $0.01. Against the backdrop of market fluctuations, EOS is losing 11% during the sell-off, as reported by Investing.com.
| Asset | Alert type | Value |
|---|---|---|
| PEPE | Volume to market cap | 54% |
| XAUT | Volume to market cap | 5040% |
| RAIN | 24h decline | -8.4% ($0.01) |
| EOS | 24h decline | -11% |
💡 Good to know
CryptoPulsar AI analysis for Infinity Ground shows risk of 9/10 and potential of 2/10. Even in the bullish scenario, which assumes a short-term breakout to $0.30 to $0.35, the forecast ends with a violent sell-off. This means the current surge could be a trap for late buyers.
How to Protect Your Portfolio from DNS Attacks and Drainers
- ✅ Before connecting your wallet, always check the URL and SSL certificate. A DNS attack can redirect even to a known domain.
- ✅ Do not sign transactions you do not understand. Tools like Step Drainer often require a signature to drain assets.
- ✅ Use separate wallets for testing and everyday transactions. Limit token permissions in your wallet.
- ✅ Monitor CryptoPulsar alerts for volume and AI analysis. Suspicious price jumps, as in the case of Infinity Ground, are a signal to keep your distance.
- ✅ When in doubt, do not enter the site until the project team confirms the threat has been removed.
Red Flags: What Should Raise Concern
🚩 Warning signs from the data: a 587.7% price increase in 7 days without fundamentals, XAUT volume at 5040% of market cap, repeated PEPE alerts, a DNS attack on multiple websites at once, and the Step Drainer toolkit on DeFi pages.
Not every highly volatile project is a scam, but the combination of extreme growth with a lack of developer and user activity increases the risk of loss.
Frequently Asked Questions
Does the DNS attack on 12 DeFi sites mean user funds have already been stolen?
Available data does not confirm the amount of losses or the number of victims. However, teams are warning against connecting wallets and signing transactions, which suggests an active risk of asset draining by Step Drainer.
Is Infinity Ground a scam?
AI analysis flags the project as suspicious (Suspicious: True) with a risk of 9/10. The price jump of 78.7% in 24h and 587.7% in 7d without fundamentals looks like manipulation. This is not a formal verdict, but a strong warning signal.
What is Step Drainer?
Step Drainer is a toolkit identified by Blockaid on sites affected by the DNS attack. It is used to steal assets after tricking users into signing malicious transactions.