Check Point’s Threat Intel Blockchain system has uncovered a new scam that highlights the ongoing threat of Rug Pulls – a deceptive tactic that results in financial losses for investors.
The company’s system recently detected suspicious activities associated with a specific wallet address, revealing a sophisticated scheme that managed to steal nearly $1 million.
Operated by the address 0x6b140e79db4d9bbd80e5b688f42d1fcf8ef9779, the scam involved the creation of tokens related to popular topics to attract unsuspecting buyers.
Outlined in a recent advisory, the scam unfolded with the creation of counterfeit tokens like GROK 2.0, followed by the injection of funds into the token pool to create a facade of legitimacy.
The scammer orchestrated simulated trading activities to give the impression of market activity, further bolstered by trades between the WETH cryptocurrency and the GROK token. This artificial demand successfully lured in investors, and once a critical mass was achieved, the scammer swiftly withdrew liquidity from the token pool, leading to significant losses for investors.
Behind the scenes, the scheme involved two distinct smart contracts, each playing a crucial role in trading and artificially inflating the token’s volume.
A total of 226 trades were carried out using the function 0x521da65d, while the contract at the address 0x4b2a0290e41623fbfeb5f6a0ea52dc261b65e29b facilitated the function 0xf029e7cf, boosting the token’s volume through strategic swaps between WETH and GROK tokens.
Check Point emphasized that this incident underscores the risks inherent in the cryptocurrency market, emphasizing the importance of remaining vigilant and conducting thorough due diligence.
“As the crypto landscape continues to evolve, it is crucial for investors to stay informed and vigilant,” the company stated.
“The recent Rug Pull scam serves as a stark reminder of the necessity for increased awareness and due diligence. By understanding the tactics employed by scammers, we can collaborate to create a safer and more secure crypto environment.”