Crypto investors fooled with fake MetaMask token of $ 1 million, scam, classified as honeypot and rug pull

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The crypto firm MetaMask recently confirmed that it will soon be dumping its own $ MASK crypto token into the wallets of its existing users. Following the development, an allegedly forged MetaMask token appeared in the crypto market, which became available for trading on the Uniswap platform. In a short period of time, this MetaMask token, which is based on the Ethereum blockchain, has reportedly increased 2,600 percent. As soon as the counterfeit tokens valued at $ 1 million (approximately 7.4 billion rupees) were sold, the sale was completed, raising suspicion of rug-pull fraud.

According to a report by CoinCodeCap, the unidentified scammers have deceived some people who are waiting for the introduction of the MASK token with their fake offer. The exact number of victims of this fraud is still unclear.

The token could only be bought and not sold, which was another reason why doubts that the token was a scam grew.

Some tech buffs posted their personal investigation on Twitter, revealing that the fake token was given verified status after scammers used DeFi Tools site DexTools to do so.

So far, DexTools has not commented on its role in not excluding cyber criminals from misusing its platform.

Code was added to the title and description of the token on Dextools being executed by the website causing the token to show a status of “verified”. pic.twitter.com/4jjNmFltZB

– coby.eth (@cobynft) December 27, 2021

Really depressing. Dude tries to ape a coin 7 times, increasing the ante each time. Fails every time. Got all his fortune last time. Coin was a counterfeit metamask token. Dextools exploit. Not for sale. What you see here is a star going out pic.twitter.com/oDQXIVIuST

– Jeremy (@lindyape) December 27, 2021

The incident, classified as a “rug pull” scam, is also known as the “honeypot” trick played by crypto scammers. While honeypot scams target the less informed, rug-pull scams involve cyber criminals abandoning their malicious projects after raising the target amount of funds.

In a recent report, research firm Chainalysis revealed that over $ 7.7 billion (approximately Rs.58.697 billion) of scams were siphoned off from crypto investors this year. The most common form of fraud is classic rug pull, the report says.

Rug pulls are widespread in DeFi because, with the right technical knowledge, it’s cheap and easy to create new tokens on the blockchain and get them listed on decentralized exchanges (DEXes) without a code audit.

In November, for example, investors in a new cryptocurrency called “Squidgame Cash” or “SQUID”, inspired by the Netflix series Squid Games, were apparently “rug pulled” after the token crashed by 99.99 percent overnight.

The scammers are believed to have raised around $ 3.3 million (about Rs.22 billion) through this project. The investigation into the case is still ongoing.

In the midst of global crypto expansion, cases of crypto-focused cybercrime are also on the rise.

In early November, the U.S. Federal Bureau of Investigation (FBI) said cyber scammers are tricking innocent people into using physical cryptocurrency ATMs and digital QR codes to complete malicious transactions and deceive them of their assets.

Hyderabad Police also recently warned investors not to move assets to unknown, unauthorized wallets to avoid fraud.

Interested in cryptocurrency? We discuss everything about crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music, and anywhere you get your podcasts.

Cryptocurrency is an unregulated digital currency, not legal tender and is subject to market risks. The information provided in this article is not intended as financial advice, trading advice, or any other advice or recommendation of any kind offered or endorsed by NDTV. NDTV shall not be liable for losses that may arise from an investment based on perceived recommendations, forecasts or other information contained in the article.

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