Crypto Conundrum: Scammers Unleash Ingenious $32 Million Rug Pull Scheme, Outsmarting Detection Systems!
Jan 22, 2024
A group of cryptocurrency scammers has successfully executed rug pulls on over 42,000 victims, resulting in losses exceeding $32 million since April 2023. The scammers employed a unique method that outsmarted some of the industry's "rug pull detectors," as reported by blockchain security firm Blockfence. The fraudulent scheme involved creating tokens that impersonated an upcoming crypto project, exploiting investor FOMO to attract unsuspecting individuals. Notably, the scammers utilised a distinctive approach, manipulating the maximum token supply through minting and burning, coupled with a code bait-and-switch tactic. In this elaborate process, scammers initiated by sending 10-20 Ether (ETH) to an externally owned account, using the funds to generate counterfeit tokens. The fake liquidity injected into the scam project created a deceptive appearance of legitimate volume in liquidity pools on Ethereum-based decentralised exchanges like Uniswap.