Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
In the last ten months, fraudsters have generated over 1,300 counterfeit tokens on the Ethereum network, deceiving more than 42,000 investors through a new, difficult-to-trace Rug Pull scheme. Consequently, the attackers acquired 14,000 ETH ($32 million) in user assets.
Blockfence, a cybersecurity analytics firm, identified that scammers initiated a new Rug Pull scheme in April 2023. This scheme employs various intricate tools, complicating detection and tracking efforts.
Analysts at Blockfence found that scammers deceive and manipulate cryptocurrency users through a combination of the following tactics:
- Manipulation of user balances. When a victim buys a fraudulent token, their balance is altered to 1, preventing any future sales. This is executed via a malicious contract associated with all the counterfeit tokens.
- Unlimited token creation. The same malicious contract permits administrators to generate an infinite number of tokens, facilitating market manipulation.
- Imitation of established project names. Scammers craft names for fake tokens that resemble legitimate projects to lure in more investors.
- Honeypot scheme. All operations by the scammers serve as a trap for new investors, preventing them from withdrawing their funds once invested in the project.
Through this scheme, fraudsters produced over 1,300 counterfeit tokens on Ethereum within ten months and misled more than 42,000 investors, resulting in a loss of 14,000 ETH ($32 million).
Related Posts
The new Rug Pull scheme encompasses these fundamental steps:
- Fraudsters create the illusion of a lucrative investment opportunity by generating fake liquidity for the project. This incites FOMO, prompting investors, concerned about missing out, to purchase scam tokens.
- They subsequently manipulate trading volume to give the impression that the project is popular and profitable.
- Scammers incorporate the lock() function with services like PinkLock to instill a false sense of security among investors.
- They utilize the execute() function to trade substantial amounts of fake tokens for ETH, profiting from the token exchange.
- To evade unwanted scrutiny, scammers return 5-20 ETH to users from each significant fake token transaction.
- They withdraw liquidity and crash the token price to zero, finalizing the scam and erasing any traces of fraud.
Analysts have indicated that the most active perpetrators leverage the increasing popularity of meme coins to establish scam projects. Tokens such as AIPEPE, Purple Pepe, Pepe Chain, Pepe Race, and Baby Pepe have been implicated in Rug Pull schemes.
Detecting new fraud schemes is challenging due to the combination of several complex tools that hinder detection and tracking. According to Pablo Sabbatella, Head of Security Research at Blockfence, scammers created a counterfeit token named Blockfence and absconded with 23.6 ETH ($53,000) before analysts identified the Rug Pull.
Fraudsters are enhancing their strategies for deceiving cryptocurrency users by utilizing Google Ads, BSC smart contracts, and WordPress to disseminate malicious software. In 2023, Rug Pull schemes constituted over half of the attacks on cryptocurrency users.
Сообщение Scammers Stole $32 Million With New Rug Pull Scheme появились сначала на CoinsPaid Media.
