How did the “Crypto Wolf” defraud billions of dollars with Rug pull?

Hackers attack codes, manipulate oracles, and arbitrage lightning loans; Encrypted Wolf carefully lays out Rug pull-carpet pull, soft pull and honeypot.

Listen to the money hymn of the encrypted wolf

Do you remember “Money Hymn”? Matthew McConaughey sniffed the cocaine, hummed a song, thumped his chest and said silly things about money. (Odaily Note from Planet Daily: “Money Hymn” is an episode of the 2013 American film “The Wolf of Wall Street”. The film tells the story of Wall Street’s legendary stockbroker Jordan Belfort’s fortune on the edge of the law and his loss of sex and drugs. The story of sinking life.)

Titan Maxamus has also been there. Well, it’s not there, it’s in a “Wall Street Wolf” style boiler room, marking while working. Maxamus knows this game, and all desperadoes do it. In movies, the carnival of sex, drugs, and stocks is called pump and dump, and in today’s crypto world, it is called Rug pull (withdrawing large amounts of liquidity and triggering smashing).

Maxamus believes that he was pulled on the carpet by a digital currency called “Safe Heaven” last month. Like countless dreamers in the meme coin market today, he bet $50 here and $100 there. He also bought Shit coin, a crude digital currency that anyone can issue.

Coin World-How did the "Crypto Wolf" defraud billions of dollars with Rug pull?

Titan Maxamus, in his butcher shop at Mt. Angel

For an instant, Safe Heaven seemed to be taking off; the next day, it collapsed. Maxamus didn’t have any evidence, but he suspected it. These seemed obvious: some third-rate scammers created Safe Heaven with a few taps on the keyboard, then advertised and quickly cashed out the money. Telegram (telegram), has become the main encrypted boiler room. The telegram group fell silent immediately, and the group once filled with rocket expressions and Musk’s animation was deleted. Since May 28th, Safe Heaven’s Twitter account has not been updated.

“Everyone I know has been pulled over the carpet,” said 38-year-old butcher Titus. “You know, there are gains and losses. I hope I have better luck.”

Thinking of the recent collapse of the encryption system, this may sound like a joke, but important funds are in danger. Through various cryptocurrency scams, billions of dollars of funds are stolen every year. According to the current situation, the situation will only get worse.

As early as the Dark Ages of Wall Street (6, 12, 18 months ago), most of these pranks were only related to the cheap agencies described in the 2013 movie “The Wolf of Wall Street.” In the peaceful days before GameStop, Dogecoin, and other new games, idiots on Long Island might sell so-called over-the-counter stocks to those who are easily deceived.

Nowadays, crypto crooks and dreamers like Titan Maxamus seem to have established a strange symbiotic relationship. They seem to capture all the problems that arise in money culture, from the stimulus-seeking triggered by Reddit, to conspiracy theories, to predatory transactions. Pulling the carpet is just a play, and there is a gentle soft rug, which can be associated with the encrypted version of the movie “The Ghost on the Hinge”. There is also a honey pot, which functions more like a trap. The old-fashioned Ponzi scheme and the newly upgraded version of the encryption scheme have defrauded people of billions of dollars.

Sometimes the result will gradually lean towards the classic mystery novel “Murder on the Orient Express”-the protagonist in this novel represents everyone to some extent. Scammers can cheat, but like Maxamus, many waiters actually hope to experience a big drop occasionally so that they can buy on dips. Both parties to the transaction, scammers and speculators, are springing up like mushrooms in a well-designed social media system. These social media can not only help profit, but also avoid potential troubles.

“Everyone I know has been pulled on the carpet”

Many people just shrug their shoulders when they know they are trapped. They put the money on the ledger, which is the price of buying a lottery ticket, and they may win the jackpot.

 Maxamus said that he is still rich, and he has not given up, still holding dozens of different meme coins ranging from $20 to $1,000. (The most recent choice is Blue Lighting, which looks like a victim of a honeypot scam-I will elaborate on each one later).

 “People are afraid of missing the next outlet, so they just throw money everywhere,” Maxamus said lightly. Just before Bitcoin and shit tokens started to crumble recently. He admits that his emotions have induced him to do one or three wrong things. He reflected: “This is part of your risk-taking.”

Coin World-How did the "Crypto Wolf" defraud billions of dollars with Rug pull?

Titus checks the legitimacy of the account through the fraud detection site on the mobile phone

The list on Tokensniffer.com has been updated over and over again, 6 minutes ago, CatRocke; 1 hour ago, MoonMiner; 4 hours ago, EverRise…an hour after hour, month after month. They all appear under the same heading: “Latest Scams and Hackers”. Tokensniffer, Shit coin appeared appropriately, showing that it has tracked 42,071 tokens and 2,250 scams. As of June 16, in the first two weeks of the month, users have recorded more than 200 encryption traps.

How many of these tokens have actually been carpeted, manipulated in rough or soft or other ways? This is what all speculators are guessing. The website was developed by a software engineer and cryptographic vendor in October 2020. He is 44 years old and lives in the western United States. Like many crypto players, he wants to remain anonymous.

Tokensniffer’s idea came about after he became a victim of pulling the carpet. His website collects new meme data from popular social media channels and scans the source code. Sometimes, users will also mark tags that are not in the system. The function of Tokensniffer is a bit like a virus scanner looking for malicious code patterns and searching for vulnerabilities with the “olfactory test” program. Duplicates of existing meme tokens are usually a red flag. The most recent scams (450 have been flagged by the site in the last 30 days) are mostly honeypot scams. The developers of Tokensniffer said that because of their special code, they are easier to find. Pulling the carpet is more complicated than imagined.

Some encryption wolves work alone, some are in groups, and almost all use aliases

Regardless of these so-called security measures, more and more people are being deceived. Chainalysis, a blockchain research organization headquartered in New York, said that since this year, more than $2.6 billion has been extorted. This figure does not include the crypto scam that has just been exposed in South Africa. The local government estimates that this batch of Bitcoin is worth 3.6 billion US dollars. All of this may sound jaw-dropping, but in fact, these numbers are significantly lower than in 2019, when fraudsters made an estimated $9 billion in profits.

But here is a key shift: the absolute number of victims is increasing. Except for some very large fraud cases, the scale of most encryption frauds seems to be getting smaller and smaller, which is good news. The bad news is that more and more of them, more and more people are caught in the trap. From 2019 to 2020, the number of victims has increased by 48% to a conservative estimate of 7.3 million, which is close to the official population of Hong Kong, China. Data from ChainAlysis shows that from the last three months of 2020 to the first three months of 2021, the number of new scams has increased by nearly 18% to 1,335.

Most personal scams are small in scale, and the authorities have turned a blind eye to them. Regulators around the world tend to prioritize cases involving large amounts of money, or violations that seem particularly bad. Only cases involving more than US$100,000 were put on the agenda. Individual buyers did not have the ability to sanction their fraudsters, and most of the fraudsters disappeared. This phenomenon is increasing day by day, and it is global. Some encryption wolves work alone, some work in groups, and almost all use online aliases. Even members of the same scam team do not necessarily know the true identities of their associates.

Paul Sibenik, chief case manager of CipherBlade, a blockchain investigative company, said, “You can’t draw blood from a stone.” “If nothing is left, or the loss is not that great, then it depends. It depends.”

CipherBlade, established in 2018, has not yet taken over any meme coin fraud cases. Sibenik predicts that as more and more people try meme coins and lose even their shirts, the inevitable litigation will pile up. At that time, a lot of business will flood in. Sibenik said: “This will have consequences, but it won’t happen soon.” “There are too many financial opportunities here, definitely not one person, not even a small group of people. They are all over the world.”

This message was posted on Twitter: “Safetrade is a’carpet umbrella’ and no one behind it can escape.” Crypto Gems, an account that promotes meme coins, is urging their followers to join and join as soon as possible.

It was April 10th, a Saturday, and Safetrade caused a sensation on social media. People say that this looks like their next token. Robert Turner invested $50 in Safetrade through Pankeswap, which is one of the most popular decentralized meme coin exchanges.

A few days later, the carpet was torn off. At least Turne thought so. He was monitoring the secure trading website on the poocoin website, which is an encrypted platform without a clear name. When the price plummeted to close to zero in less than a minute, he checked. Safetrade’s telegram group. Disbanded and the members were kicked out.

Then things become very strange. A few minutes later, Turne received a private message from Telegram. The man offered to help him recover his money. All he had to do was to transfer all the tokens left in the digital wallet to a single wallet.

The anonymous user wrote: “You need to send your Safetrade balance to the burn wallet assigned to you. This is a professional problem. I am here to solve this problem and will not deceive you.”

Turne, 42, is a software engineer in Melbourne, Australia. He smelled trouble and didn’t do what they said. Turne said that his tokens were worth a few cents at the time, but in this way, they can accumulate more. “If he can collect enough numbers from all kinds of people, they may be worth a lot of money.” He said of the so-called well-meaning person.

Then there is Mooncharge-now it looks like a mild “soft rug”, which refers to when a developer of a token project changes jobs and abandons the efforts on the previous token, making this token completely useless value. In April of this year, after seeing the news on Reddit, Turne bought Mooncharge worth $50. Before long, he became isolated and helpless. The thing is like this:

The administrator of the Telegram team, possibly the developer of Mooncharge, promised fans in April that he was working on a new version of the token. “We will let everyone post on Mooncharge v2.” The person wrote, “Be prepared, it will be spiritual.”

“V2?” The Mooncharge group on the telegram exploded. “Does anyone want to tell me what happened? Have we been deceived?” a person asked. “I lost $600 20-30 minutes ago. What happened,” another said.

By early May, the administrator of the organization still insisted that the V2 version was already in development. “Please stay tuned,” the administrator wrote. Then, there is nothing. As of July 1, there are no further updates.

“After that, the token has basically become worthless,” Tuner said. He persisted for a while, still hoping that V2 would appear, and then sold the remaining Mooncharge. “Everyone is still losing money,” he said.

“If nothing is left, or the loss is not that great, it depends on the situation.”

Ben Ghrist knows all about password scams. Currently, he is trading meme coins as a full-time job. The 35-year-old Ghrist is a millionaire of Safemoon, a billionaire of Kishu Inu and Sanshu Inu, and a billionaire of Keanu Inu. He has at least 15 different tokens, about a quarter of which he earned on Dogecoin’s $25,000 “portfolio”. Dogecoin was created in 2013 and was created as a joke, known as the Shiba Inu mascot. .

Ghrist suspects that when a seemingly legitimate token sets a trap, such as once an investor buys it and cannot sell it, his carpet will be pulled down and become a victim of a honeypot. Grist said that he wanted to trade when a token called Space Jupiter was released with 1,000% of the proceeds, but this token could not be sold within 20 minutes. He said that the creator of the token eventually resumed trading, but this has been after the collapse of the token price.

“It depends on luck wherever you go.” Ghrist said, he usually works with two laptops in bed. Sometimes they even work for 48 hours all night long in order to get tokens.

When choosing meme coins, he considered a series of factors to minimize risks. One aspect is the number of social media accounts owned by a token. He said that legitimate tokens tend to have more accounts than scam tokens. On the other hand, whether these accounts are public or private, public accounts are more secure than private accounts. And how long these accounts have to chat with investors, the more investors, the longer the chat time, the better. Then, he researched the Telegram group and learned that the meme coin topic is called “money laundering group”. “When the whole package looks sloppy, it is a bad sign,” he said.

Coin World-How did the "Crypto Wolf" defraud billions of dollars with Rug pull?

Roanoke, Texas, Ghrist in his parents’ room

Ghrist sometimes feels deceived, but is also moving on. “When I feel scared at a certain time, I will balance it. If I can earn five times, I may only earn three times,” he said. “If you clearly know that your tokens can continue to exist for more than 1 day, then you can do 30 times or more.”

The biggest encryption theft case in history has not been exposed until recently, and it seems that it is neither a carpet, nor a soft-pull, nor a honeypot. This looks like an old-fashioned Ponzi scheme. In April of this year, two companies in South Africa stated that their crypto investment platforms were hacked. Then they disappeared, along with $3.6 billion in Bitcoin. The lawyers Raees and Ameer Cajee, who work for the two companies, said on June 29 that they no longer defend them and do not know where they are. The previous record holder is China’s crypto wallet and trading software PlusToken. According to Chinese authorities, PlusToken users were defrauded of more than $2 billion in another Ponzi scheme. In November last year, these leaders were sentenced to 2 to 11 years in prison.

However, most authoritative organizations around the world are trying to keep up with this pace. 10 years after the birth of Bitcoin, regulators are still trying to solve the problem of how to regulate cryptocurrencies. The key to the problem is that cryptocurrencies operate without a government or a central bank. As more and more institutions and investors are generally involved in the encryption field, despite all kinds of violent fluctuations, investors will not jump out in a short time, and new frauds will inevitably appear.

Kim Grauer, Head of Research at Chainalysis, said: “Cryptocurrency is entering a new phase.” Technology is advancing and transactions are becoming easier and easier. Institutional investors and ordinary investors who were once reluctant to approach the crypto world will now take a long-term perspective. Consider the layout. The Bank for International Settlements, the central bank among central banks, has just established strict capital standards for banks wishing to engage in Bitcoin. This is a recognition of the obvious fact-Bitcoin is risky, but it also recognizes the new position of cryptocurrency in the financial order.

The encryption wolf also knows all this, and somewhere, “The Holy Grail of Money” continues to sing.

Jason Gottlieb, a New York partner at Morrison Cohen, said: “Some people create special tokens for their own money laundering, and some people simply vent their malice, saying x The project is a scam because they are actually working on project y, a competitor of x, or they are working for a fan.”

One thing is certain: when people make money, no one complains. When people start to lose money, they will scream that they have been cheated.

Tyler Moore, a cybersecurity professor who studies cryptocurrency scams, said: “When prices rise, people don’t ask so many questions.” “When things go bad, you see the other side of things.”

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/how-did-the-crypto-wolf-defraud-billions-of-dollars-with-rug-pull-2/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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