Massive $32 Million Scam Scheme Uncovered

In a shocking revelation, analysts at Blockfence have exposed an automated scam operation that managed to siphon off a staggering $32 million from unsuspecting victims. This elaborate scheme, which unfolded since April 2023, left approximately 42,000 users in financial turmoil.

Blockfence, a leading blockchain security firm, initiated an investigation after discovering a fraudulent token associated with their own company. The culprits behind this audacious fraud have designed a system that operates almost entirely on autopilot. An algorithm selects and creates tokens resembling existing company assets or projects. Once the token gains liquidity, the scammers swiftly withdraw all the funds, leaving investors in despair.

Analyst Pablo Sabbatella noted, "One person can orchestrate all of this because many tasks are executed programmatically. Token name generation involves AI-generated words. Deploying the coin, creating liquidity pools, locking tokens, rug pull – most of these actions appear automated."

To evade suspicion, the fraudsters cap the "profits" from each asset at 5-20 ETH, ensuring they remain under the radar. Sabbatella advised the crypto community to "avoid purchasing tokens you don't understand." Risky traders can utilize various scam detectors to protect their investments.

In a bid to apprehend the culprits, the Blockfence team will scrutinize the wrongdoer's activities on BNB Chain, Arbitrum, and Base networks.

According to Immunefi, the Bitcoin market suffered losses of $1.8 billion due to hacking and fraudulent activities in 2023, with a total of 319 incidents reported.

It's worth recalling that in December, just before the launch of Sleepless AI farming on Binance's Launchpool platform, unknown actors executed a rug pull involving a token bearing the same name.