Even some of the industry’s “rug pull detectors” didn’t pick up on the sophisticated rug pull schemes, according to the blockchain security firm.
A group of cryptocurrency scammers have managed to rug pull over 42,000 victims for over $32 million since April 2023 via a novel method that has even fooled some of the industry’s “rug pull detectors,” according to a blockchain security firm.
Like many cryptocurrency rug-pull scams, the scammers create tokens impersonating a soon-to-be-launched crypto project token, using investor FOMO (fear of missing out) to entice investors.
However, in a Jan. 18 report, Blockfence’s head of security research, Pablo Sabbatella, revealed the scammers used a distinctive method that involved faking the maximum token supply through minting and burning and using a code bait-and-switch tactic that deceived victims and fooled rug pull detectors.
