Check Point Threat Intel Blockchain has uncovered a new scam, shedding light on the ongoing threat of Rug Pulls, a deceptive tactic that causes regular financial losses for investors.
The company’s system recently detected suspicious activity associated with a specific wallet address, exposing a sophisticated scheme that managed to steal nearly $1 million.
The scam, run by 0x6b140e79db4d9bbd80e5b688f42d1fcf8ef9779, involved creating tokens related to popular topics to attract unsuspecting buyers (those with no data analysis skills, you get the idea).
The scheme described in the message unfolded with the creation of the mentioned fake tokens, including GROK 2.0, followed by the injection of funds into the token pool to create the illusion of legitimacy.
The simulated trading activity orchestrated by the fraudster created the appearance of market activity, which was further enhanced by trading between the WETH cryptocurrency and the GROK token.
The inflated demand successfully attracted investors, and when critical mass was reached, the fraudster quickly withdrew liquidity from the token pool, leaving investors with significant losses.
Behind the scenes, the scheme involved two different smart contracts, each of which played a crucial role in the trade and artificially increased the volume of the token.
A total of 226 deals were made using the 0x521da65d function. At the same time, the contract at 0x4b2a0290e41623fbfeb5f6a0ea52dc261b65e29b contributed to the 0xf029e7cf function, increasing the token volume through strategic swaps between WETH and GROK tokens.
Check Point said the incident highlights the inherent risks in the cryptocurrency market, emphasizing the importance of constant vigilance and due diligence.
“As the crypto landscape continues to evolve, vigilance and awareness are paramount for investors,” the company wrote.
“The recent Rug Pull incident serves as a stark reminder of the need for increased awareness and due diligence. By understanding the tactics of fraudsters, we can work together to create a safer and more secure crypto environment.”