PeckShield, a blockchain security firm, has revealed that two major altcoin projects have been scammed. It issued a warning stating that the crypto protocol Freedom Protocol and Raccoon Network are scams. They also revealed that the scammers transferred about 20 million BUSD to another address. Here are the details…
PeckShield warns of these altcoin projects
Freedom Protocol claims to provide a financial asset with the highest fixed APY. It can offer up to 183,395.2 percent APY. Raccoon Network is a metaverse company that monetizes its data. However, PeckShield has now claimed that both companies are scammers. PeckShield gave two addresses that it claims belong to Raccoon Network and Freedom Protocol. BscScan, a platform that uncovers ten chain data on the Binance Blockchain, tracks both addresses as Raccoon and Freedom.
PeckShield reveals that both addresses moved around 20 million BUSD to another address. The address where the deposit was made indicates 20 million BSC-USD. 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.
How can we protect ourselves from crypto fraud?
FTX CEO Sam Bankman-Fried revealed in an interview with CNN that a significant number of crypto products are empty and resemble a Ponzi scheme. The value for such projects often simply depends on the people who put money into them. He explained that exchanges like FTX and Binance are responsible for identifying and delisting such products. However, as SBF points out, it’s not always easy to recognize valuable products versus Ponzi schemes.
Experts also warn investors against pump and dump schemes, as are other common ways investors lose millions of dollars in crypto. They also ask investors to check common signs to check the reputation of crypto projects. One such sign is to see if the project has been audited by reputable security companies or other experts.
Millions of dollars lost with fake crypto apps
Meanwhile, a new report from the FBI said that an estimated $42.7 million from 244 Americans was stolen by cyberscammers promoting fake crypto apps. The institution advises individual investors as well as financial institutions to be careful. They say scammers have had “increasing success” by dumping the cryptocurrency from unsuspecting investors. Stealing a few logos and setting up a website that mimics a well-known financial company is an old trick.
Today, crooks are using this scheme from crypto to defraud people. In April, cybersecurity website KrebsOnSecurity posted about a crypto-related scam using the name of renowned portfolio manager Cathie Wood and investment firm ARK Invest to redirect victims to a fake website and defraud them with the promise of a cryptocurrency “gift”.
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