A fraudulent MetaMask Token Honeypot fraud culminated in a $1.8 million loss.

MetaMask, a cryptocurrency exchange, has announced that this will eventually start airdropping its very own cryptocurrency, $MASK, further into accounts of its current subscribers. Watching the story, a rumored phony MetaMask token appeared on the crypto market, and it was soon accessible for trade on the Uniswap platform.

This MetaMask token, which is based just on the Ethereum platform, allegedly increased over 2,600% in a short period of time. The transaction was halted as soon as the bogus tokens worth $1 million (approximately Rs. 7.4 crores) were sold, sparking suspicions of a rug-pull fraud.

According to a statement from CoinCodeCap, this unnamed scammer (s) misled several users who were anticipating the introduction of the MASK cryptocurrency with their phony proposal. The actual number of people who have fallen victim to this fraud is unknown.

The cryptocurrency can now be bought, not traded, thus adding fuel to the fire of suspicions that the token was a hoax. Fraudsters utilized DeFi utilities portal DexTools to provide a phony credential a validated status, according to several computer hobbyists who shared their own research in Tweet.

DexTools has yet to comment on its part in the inability to prevent criminal networks from abusing its network.

That event, which has been labeled a “rug pull” fraud, has also been dubbed a “honeypot” scam by crypto scammers. Rug pull scams will be when fraudsters abandon their destructive initiatives after collecting the goal amount of money, whereas honey trap scams targeted some less educated.

According to a new analysis by market researcher Chainalysis, scammers cheated cryptocurrency traders outside of $7.7 billion (approximately Rs. 58,697 crores) in the year. According to the survey, the classic rug pull was perhaps the most popular type of swindle.

Rug pulls are common in DeFi since it is simple and cheap to produce new currencies on the network and have those published on cryptocurrency exchanges (DEXes) without the need for a code audit if you have the necessary technical skills.

A MASK token was originally reported as a fraud on Twitter Monday evening, with multiple accounts warning that it was a scam despite a pop-up on DEXTools claiming this was authentic. Since then, Twitter user @cobynft has detailed how well the scam worked, claiming that it was the DEXTools app creators’ “major error” which permitted the scheme to convince so many people to acquire the tokens.

The present expectation for a real MetaMask token is another reason why the MetaMask token hoax was so successful. The MetaMask group has suggested launching a token to decentralize the popular EVM wallet, with many thinking that it may be accomplished via an air assault.
The phony MetaMask token is the third significant crypto-fraud to strike the market this holiday shopping season. MetaSwapMGAS, a Binance Smart Network initiative, allegedly stole 1,100 BNB from consumers on Sunday. Some other Ethereum startup, MetaDAO, looks to have pulled a rug over its investors yesterday, stealing 800 ETH worth over $3.2 million.

Investors in a new cryptocurrency named “Squidgame Money” or “SQUID,” which was influenced mostly by Netflix comedy Squid Games, were reported “rug pulled” in November when the cryptocurrency collapsed by 99.99 % up overnight.
This scheme is thought to have netted the scammers over $3.3 million (around Rs. 22 crores). The case’s inquiry remains underway.

Instances of crypto-focused criminality are now on the rise in tandem with the worldwide cryptocurrency boom.

The Federal Bureau of Investigation (FBI) in the United States claimed earlier this month that cyber fraudsters are duping customers out of their funds by having them utilize physical bitcoin ATMs and digital QR codes to execute harmful transactions.

To avoid being defrauded, Hyderabad Police has issued a warning to investors about moving funds into unknown, unapproved wallets.

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