A serial scammer and rug-puller have amassed over 160 ETH, price $315,000 at spot charges, by creating fraudulent meme cash and rugging customers off their hard-earned funds, on-chain information analyzed by LookonChain on July 9 shows.
Data present that the scammer’s scheme includes creating meme tokens and including liquidity on Uniswap–a well-liked decentralized alternate–to entice unsuspecting liquidity suppliers and consumers, solely to withdraw all of the liquidity from the pool a number of days later, forcing costs to plunge. His actions have resulted within the lack of over 160 ETH over the previous couple of weeks.
Fraudulent Meme Cash And Rug Pulls
The scammer’s actions got here to mild when it was found that they withdrew 1.5 ETH from KuCoin. This cryptocurrency alternate earlier than July 15 doesn’t require customers to confirm their id earlier than launching a meme token, TOMMY, and supplying 1 ETH as liquidity. After 18 days, the scammer withdrew all liquidity, primarily rugging customers. The scammer, information exhibits, made away with 28.7 ETH.
With this “success” streak, the scammer was emboldened and created three new meme cash in KSI, ZUCK, and BILL. The liquidity of those tokens on Uniswap was additionally rugged, and the scammer stole 140 ETH on the expense of liquidity suppliers.
The scammer’s newest endeavor includes the creation of two new meme tokens, WALTER2.0 and GIGA2.0, accompanied by offering 2 ETH as liquidity. As of now, the liquidity for these tokens has but to be eliminated. Nevertheless, going by current tendencies and the trail of rug pulls, warning is strongly suggested, and potential traders are urged to chorus from buying these tokens.
Exploiting Belief And FOMO?
The autonomous nature of decentralized finance (DeFi) coupled with the rising recognition of meme cash as extra customers bounce in concern of lacking out (FOMO), contemplating the current success of tokens like SHIB, PEPE, and LADYS, there’s a increased probability of customers dropping funds by means of rug pulls.
In this kind of rip-off, a consumer creates a undertaking, even closely selling it on social media platforms like Twitter, solely to steal funds locked within the undertaking’s liquidity pool, forcing the token’s worth decrease and stopping traders from promoting. With this, traders are left holding nugatory tokens, and their funding is misplaced.
Early this month, Encryption A.I. creator stole roughly $2 million forward of the platform’s liquidity migration earlier than apologizing. He revealed that he was battling crypto playing dependancy and had misplaced over $300,000 previously few months.
Analysis findings by Beosin, a blockchain safety agency, revealed that $656 million of crypto belongings have been stolen in Q2 2023 by means of rug pulls, hacks, and different scams. The agency identified that there have been greater than 110 rug pulls by means of which liquidity suppliers misplaced over $75 million.
Function picture from Canva, chart from TradingView
