Cryptocurrency scammers have been trying to defraud investors since April 2023 More than 1,300 fake cryptocurrencies were released.
According to Blockfence’s security researchers, fraudsters are using fake cryptocurrencies $32 million from more than 42 thousand victims raised money.
The launch of fake cryptocurrencies is almost automatically It’s happening. Scammers are impersonating companies or projects that have not yet released their own cryptocurrency to trick people.
Then in the market to convince people it is a fake volume for cryptocurrency being created. Once enough capital is generated, the fraudsters exit the market by selling the coin.
Smart contracts created for these cryptocurrencies successfully pass many security tests. But in fact, fraudsters use the contract to infinite amount of coins for themselves can create.
Pablo Sabbatella, one of the people who carried out the research, “One person may be organizing all of this because as we see, many things are done programmatically, for example token names are made up of many different words mixed with AI. Creation of tokens, opening of liquidity pools, locking of LP tokens, rug pul… most of this seems automatic.” said.
According to Sabbatella, investors want to stay away from risky projects like this. multiple security tools should use.