Blockchain security firm PeckShield cryptocurrency protocol of Freedom Protocol and Raccoon Network and altcoins Issued a warning stating it was a scam. Moreover, it was revealed that the scammers transferred approximately $20 million BUSD to another address.
Freedom Protocol claims to consistently deliver the highest annual return (APY). The alleged fraudulent protocol seems to offer unrealistic returns of 183.395%.
Raccoon Network, on the other hand, appears to be a Metaverse company that makes money from its data. However, PeckShield suggested that both companies are scams.
What Does the Data Show for Altcoins?
PeckShield shared two addresses it claims to belong to Raccoon Network and Freedom Protocol. The BscScan platform, which tracks the Blockchain data on BNB Chain, has also registered these two addresses as Raccoon and Freedom.
#PeckShieldAlert #scam PeckShield has detected @RACNETWORK and @freedomprot are scam. $RAC address: https://t.co/3St3spDmG2
Freedom Protocol Token $FREE address: https://t.co/6KB2bK3NKu
Scammers already transferred ~20m $BUSD (IDO) to 0xf800…469336 pic.twitter.com/ahgsW4itb1— PeckShieldAlert (@PeckShieldAlert) July 20, 2022
PeckShield revealed that both addresses moved around 20 million BUSD to another address. The address where the deposit was made appears to have assets of over 20 million BUSD. The total value of the account is close to 21 million USD.
Both Raccoon Network and Freedom Protocol have yet to comment on the allegations.
Protection Against Cryptocurrency Scams
FTX CEO Sam Bankman-Fried explained in an interview with CNN that a substantial number of crypto products are hollow and resemble a pyramid scheme. According to the CEO, the value of such products only depends on people investing money in them.
Sam Bankman-Fried also said that exchanges like FTX and Binance are responsible for identifying and delisting such products.
*Not investment advice.