A comprehensive research investigation by Blockfence has uncovered a massive Ethereum rug pull scheme, involving over 1,300 incidents with a consistent pattern. The scammers managed to steal over $32 million (14,000 ETH) and victimize more than 42,000 individuals. The report delves into the sophisticated techniques employed by the scammers, making their activities challenging to trace even by advanced security tools. Notably, the scammers exploited FOMO by creating tokens with names impersonating upcoming crypto projects and companies.
The research outlines the deceptive tactics used, including faking token max supply, burning holders’ tokens, infinite minting for admins, and other red-flag functions implemented in smart contracts. Blockfence’s analysis focuses on a specific case, the Blockfence fake token, as an illustrative example of the scammers’ modus operandi among thousands of scam tokens created.