Since April 2023, unknown individuals have created more than 1,300 fraudulent tokens and stolen over $32 million from approximately 42,000 users as a result of rug pull. Blockfence analysts reported this.
According to experts, the operation of creating coins is performed almost completely automatically. The algorithm selects and creates a token that is similar to an asset of an existing company or project.
Then the scammers pump up the token with volume, and when there is sufficient liquidity, they withdraw all funds.
“All of this can be organized by one person because many things are done programmatically, for example, creating token names is a lot of words generated by AI. Coin deployment, creation of liquidity pools, token blocking, rug pull. Most of them look automatic,” said analyst Pablo Sabbatella.
Blockfence initiated an investigation after it discovered a scam coin from its own company. At the same time, attackers limit the “profit” from each asset to 5-20 ETH in order to remain undetected.
To save funds, Sabbatella advised the crypto community “not to buy tokens that you don’t understand.” Risky traders can use various scam detectors.
Now the Blockfence team will check the attacker’s activity on the BNB Chain, Arbitrum and Base networks.
According to experts, the operation of creating coins is performed almost completely automatically. The algorithm selects and creates a token that is similar to an asset of an existing company or project.
Then the scammers pump up the token with volume, and when there is sufficient liquidity, they withdraw all funds.
“All of this can be organized by one person because many things are done programmatically, for example, creating token names is a lot of words generated by AI. Coin deployment, creation of liquidity pools, token blocking, rug pull. Most of them look automatic,” said analyst Pablo Sabbatella.
Blockfence initiated an investigation after it discovered a scam coin from its own company. At the same time, attackers limit the “profit” from each asset to 5-20 ETH in order to remain undetected.
To save funds, Sabbatella advised the crypto community “not to buy tokens that you don’t understand.” Risky traders can use various scam detectors.
Now the Blockfence team will check the attacker’s activity on the BNB Chain, Arbitrum and Base networks.
