CertiK Skynet, the blockchain security platform, has issued an urgent alert regarding a slew of honeypot scams being deployed on Binance Smart Chain (BSC), designed to defraud unsuspecting investors.
These scammers are found to be deploying honeypot contracts, masquerading as authentic projects to steal users' funds. The contracts issue tokens that can be purchased but are impossible to sell, trapping investors who are unaware of the scam.
One particular scammer stands out for their consistent deployment of such contracts on BSC, characteristically employing a 'Grey List' that prevents token selling. This strategy is in addition to the traditional use of a blacklist which adds another layer to the scam. From July 31 to August 1, 2023, the scammer has launched as many as 32 different honeypot tokens on BSC.
Scrutiny of this scammer's operation dates back to at least January 2022. To lure investors into buying these worthless tokens, the fraudsters employ automated bots to falsify trading activity and make the tokens appear more attractive.
Once sufficient liquidity is achieved within a particular token, the scammer removes the liquidity and attempts to hide their tracks by transferring the ill-gotten gains through Tornado Cash, a privacy-focused Ethereum mixing service. Despite their obfuscation efforts, CertiK Skynet has been able to identify a wallet where funds are withdrawn after passing through Tornado Cash.
