Honeypot Scams: A Growing Concern in the Cryptocurrency World

02/16/2023 17:47 • Blockchain Buzz • 162 views

According to the news, according to CertiK monitoring, the following four honeypot scams have resulted in a total of 1.3 million dollars in stolen funds. Bsc:0x35E4EFa6f4f00478Cb9e391F0894f48A7A02a583； Bsc:0x81058db5c2Cf219aB8fecD850b3067d08216467D； Bsc:0xfDdac426a674856F338566d2e75388c2489FD512； Bsc:0xEE4Af49d4cd8B8Ea77875bACE4e6787d5CD11D54； These scams were promoted by a Telegram group called LanskoyTrade. This honeypot scam is also the largest honeypot scam since the Squidgame honeypot lost $5.7 million in 2021.

Security company: Telegram group named Lanskoy Trade is promoting honeypot fraud, resulting in the theft of US $1.3 million

Interpret the above information:

The global cryptocurrency market has become a hub for fraudulent activity in recent times with the rise of honeypot scams. These scams lure unsuspecting investors by offering them high returns on investment in exchange for their digital assets. Recently, the CertiK monitoring team identified four honeypot scams that resulted in the theft of a whopping $1.3 million. The scams were run on the Binance Smart Chain (BSC) network and were promoted by LanskoyTrade, a Telegram group.

The mechanics of a honeypot scam are simple yet effective. The scammers create a seemingly legitimate project with attractive rewards, which require investors to first deposit their digital assets into a smart contract. Unbeknownst to the investors, the smart contract is designed to automatically transfer their assets to the scammer’s account, leaving them with a loss of their entire investment.

The four BSC-based scams identified by CertiK are prime examples of the modus operandi of these fraudulent activities. Investors were lured into depositing their BSC tokens into the smart contract addresses provided by the scammers, with the promise of high returns. Unfortunately, once the deposits were made, the smart contracts were designed to facilitate the transfer of these tokens to the scammers’ wallets.

Honeypot scams are not new to the cryptocurrency community, and they continue to evolve as scammers come up with new ways to deceive unsuspecting investors. For instance, the Squidgame honeypot scam, which lost investors $5.7 million in 2021, was sophisticately crafted with a game that ran on the Ethereum blockchain. The game was designed to entice investors to deposit their Ethereum tokens, promising them a chance to win rewards worth millions of dollars.

In conclusion, the rise of honeypot scams is a growing concern in the world of cryptocurrency, and investors should exercise caution when investing their assets. Investors should always carry out due diligence on any project before investing and, more importantly, be wary of seemingly unrealistic returns. The cryptocurrency community, on its part, should support the efforts of monitoring teams such as CertiK in uncovering and exposing these fraudulent activities.

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