Bogus MetaMask Tokens con crypto investors out of $1M, Scam Classified as Honeypot and Rug Pull. Earlier this month, the cryptocurrency business MetaMask stated. That it would shortly airdrop its own cryptocurrency token, $MASK. Into the wallets of its existing customers. The development resulted in the appearance of an allegedly bogus MetaMask token. In the cryptocurrency market, which was then made available for trading on the Uniswap platform. The value of this MetaMask token, which is constructed on the Ethereum blockchain. Has apparently increased by 2,600 percent in a short period of time. A rug-pull scam suspicion was raised as soon as the bogus tokens worth $1 million. (Approximately Rs. 7.4 crore) were sold and the sale was immediately suspended.
According to a report from CoinCodeCap, the anonymous scammer(s) used their phony offering. To defraud several users who were anticipating the introduction of the MASK coin. The exact number of people who fell victim to this fraud is yet unknown.
The token could only be acquired, not sold, which was another cause. For the rise in suspicions that the token was a hoax, as previously stated.
According to the findings of certain tech enthusiasts’ own personal research on Twitter. A bogus token was awarded a verified status after scammers used the DeFi tools website DexTools to do so.
The occurrence, which has been categorized as a “rug pull” fraud. Has also referred to as a “honeypot” ploy, and it perpetrated by crypto scammers. While honeypot scams prey on the uninformed, rug pull scams occur when cybercriminals abandon. Their destructive operations after having acquired the desired amount. Of money from their victims.
Research firm Chainalysis found that fraudsters mooched off over $7.7 billion
The report states that, according to a recent investigation by research firm Chainalysis. Scammers have stolen more than $7.7 billion (roughly Rs. 58,697 crore) from cryptocurrency investors so far this year. According to the findings of the study. The classic rug pull scam the most often encountered fraud.
Token rug pulls are widespread in the DeFi business because. With the proper technical understanding, it is affordable and straightforward. To create new tokens on the blockchain and have them listed on decentralised exchanges (DEXes). Wiithout the requirement for a code audit.
The value of a new cryptocurrency known as “Squidgame Cash” or “SQUID,” . Which inspired by the Netflix comedy Squid Games, plunged by 99.99 percent in a single day in November. Causing investors to reportedly “pull the rug out from under them.”
Over $3.3 million (almost Rs. 22 crore) in revenue said to have generated. By the scammers as a result of this initiative. The inquiry into this situation is still ongoing at this time.
Coincident with the global expansion of cryptocurrency, there has also been an increase. In the number of cases of cybercrime that involves bitcoin.
It was report earlier this month by the Federal Bureau of Investigation (FBI) in the United States. That cyber criminals are luring unwary clients into utilizing physical bitcoin ATMs. And digital QR codes to complete harmful transactions and defraud them of their money.
The Hyderabad Police Department has issued a caution to investors. Advising them to avoid depositing money into unknown. Unauthorised wallets in order to prevent cheated.