A group of cryptocurrency scammers managed to rug pull over 42,000 victims for over $32 million since April 2023, stated Cointelegraph. It is believed that this method has even fooled some of the industry’s ‘rug pull detectors,’ according to a blockchain security firm.
Sources revealed that the scammers create tokens impersonating a soon-to-be-launched crypto project token, using investor FOMO (fear of missing out) to entice investors, added Cointelgraph.
With insights from a January 18, 2024, report by Pablo Sabbatella, head of security research, Blockfence, revealed the scammers used a method that involved faking the maximum token supply through minting and burning. This method is expected to use a code bait-and-switch tactic that deceives victims and fools rug pull detectors.
Furthermore, “By doing this, the victims buying the token are misled, as some rug pull detectors even miss and mark this token as safe,” Sabbatella concluded.
(With insights from Cointelegraph)
