Investigating Recent Crypto Scams: Beware of Honeypots and Deceptive Returns

In the fast-paced world of cryptocurrencies, where gains and losses can happen within minutes, investors must remain vigilant to protect their hard-earned money. Unfortunately, the volatile nature of the market also attracts dishonest individuals seeking to exploit unsuspecting investors. In this investigative blog post, we will delve into two recent crypto scams that resulted in significant financial losses for investors: the Bitlord liquidity removal and the Harvest Keeper scam.

The Bitlord Honeypot Scam:
CertiKSkynetAlert recently detected an alarming liquidity removal on a cryptocurrency called Bitlord (BITLORD). The deployment address, identified as 0x781bd109834C534Dc0f799aFDF65e6eb5151b839, transferred approximately 309 WETH (worth around $567K) from the liquidity pool (LP). This suspicious activity raised red flags, as the token seemed to be a honeypot scam.

A honeypot scam involves enticing unsuspecting investors into providing liquidity or investing in a fraudulent project. Once a significant amount of funds has accumulated, the scammers abscond with the money, leaving investors empty-handed. In this case, the deployment address swiftly retreated, leaving behind disappointed investors and a suspicious trail of activity.

The Harvest Keeper Scam:
Let’s rewind to March 19, 2023, when CertiK confirmed that Harvest Keeper was a scam that resulted in the theft of $933K from investors. The scammers behind Harvest Keeper employed various deceitful tactics to lure investors, including advertising an unrealistic return of 101% in 21 days and a supposed 4.81% daily return through a non-existent trading bot.

Investigations revealed that Harvest Keeper’s founder, Markus Peter, was, in fact, an actor hired on Fiverr under the name ChaseComStock. The entire team, including the CEO and CTO, was fabricated, with their alleged images likely sourced from Ukrainian nationals. The involvement of these individuals in the scam remains ambiguous, as it is possible that their identities were simply misappropriated by the scammers.

But how did the scammers manage to pilfer such a substantial sum of money? The Harvest Keeper contract had a major centralization flaw within the `getAmount` function, which enabled the owner to withdraw all funds from the contract. Furthermore, the scam’s website tricked investors into signing approvals to a wallet controlled by the scammers. With these approvals, the scammers initiated `transferFrom` transactions to steal users’ tokens, resulting in a total loss of $933K for unsuspecting victims.

These recent incidents serve as stark reminders of the importance of due diligence and skepticism when venturing into the cryptocurrency landscape. Scammers are constantly developing innovative methods to deceive unsuspecting investors, and it is crucial to remain informed and cautious.

Vigilant investors should thoroughly research the projects they invest in, scrutinize team members’ backgrounds, and thoroughly review smart contracts. Additionally, engaging with reputable security auditing platforms, such as CertiK, can provide an extra layer of protection against fraudulent schemes.

Cryptocurrencies offer tremendous opportunities for financial growth, but ensuring one’s security and avoiding scams requires constant vigilance. As the industry matures, stakeholders must work collectively to expose and eliminate such scams, fostering a safer environment for all participants.

Recent Articles


Related Stories

Leave A Reply

Please enter your comment!
Please enter your name here

Stay on top - Get the daily news in your inbox