Crypto Scammer Steals $333K in BNB Using 16K Smart Contracts

While the use of blockchain technology and cryptocurrencies was imagined for a purpose bigger than just scamming, unfortunately, these fraudsters and illicit users are the ones who first brought crypto to light in most parts of the world. 

Today, years later, crypto is witnessing the audience and utilization that was intended for it, but regardless these scams and frauds continue to pervade in the crypto space.

Not Just a Regular Scam

While most scammers perceive their operations using a single kind of fraud be it rug pulling crypto projects or honey potting investors or simply hacking their wallets, this particular scammer combined all existing methods to steal approximately 900 BNB worth about $333k.

According to the details shared by the RiseUp team, the said scammer began by honey potting his victims into investing in a smart contract. Once invested, investors realized that they were unable to sell their tokens.

However, in order to lure the victims, the scammer created an additional wallet to add liquidity. This created the faux visibility of the smart contract having the potential to grow further. 

As soon as enough people invested in it, the scammer would end up rug pulling the investors by extracting all the liquidity from the smart contracts including the investors’ money.

Using this rug pulled money, the scammer then created another smart contract with an even bigger liquidity and repeated the entire process to take advantage of the victims. 

The investigation conducted detailed that the scammer conducted his operations using a computer algorithm that generated a new fraudulent token every 30 minutes. As a result till the time of this report, the scammer managed to create about 16,814 smart contracts which orchestrated his scams.

The Solution

While there is little to no way to actually find out if your investment is safe from fraud or not, the investigating team RiseUpV2 did hint towards their Rug Screener tool. The tool enables traders to figure out beforehand if their investment is prone to one or more kinds of scams or fraud.