The Rise of Crypto Scams in the Digital Currency World
Cryptocurrency investors are currently facing a new wave of scams, with the recent scandal involving ETHTrustFund DAO causing shockwaves in the digital currency community.
- ETHTrustFund DAO allegedly stole $2 million and laundered it through a hybrid app.
- Lead developer Peng remained silent for months before the incident and deleted all accounts.
- Other recent cryptocurrency scams, such as Gemholic and Ordiz, highlight the increasing risk of fraud in the industry.
In the case of ETHTrustFund DAO, a decentralized autonomous organization operating on the Base network, reports from 0ctoshi have confirmed the $2 million scam.
According to blockchain security firm PeckShield, the stolen funds were transferred to a new wallet on July 20, 2024, and then moved through hybrid apps like Tornado Cash and Railgun to conceal the transactions.
Despite initial success and investor interest in projects like ETHTrustFund, the sudden disappearance of lead developer Peng in April signaled trouble.
The Fall of ETHTrustFund and the Emergence of Exit Scams
Following in the footsteps of successful projects like Olympus and Wonderland, ETHTrustFund initially garnered attention with its unique rebase mechanism and promises of blockchain-based bonds.
However, the project took a nosedive when Peng cut off communication with the community and vanished from online platforms, hinting at a potential exit scam.
0ctoshi’s report on the movement of over $2 million from ETHTrustFund’s vaults to new wallets further confirmed suspicions of foul play.
Scams like the ones involving Gemholic and Ordiz highlight the ongoing risks in the crypto space and emphasize the need for investors to stay vigilant.
The Need for Caution in the Crypto Community
The rise of crypto exit scams serves as a stark reminder for investors to conduct thorough due diligence before investing in any project.
With fraudulent activities on the rise, it is crucial for individuals to remain cautious and report any suspicious behavior to platforms like Chainabuse.
By staying informed and being proactive in detecting scams, investors can help safeguard themselves and the broader crypto community from financial harm.