Blockfence: Over 1,300 Cryptocurrency Scams Have Stolen $32 Million Since April 2023

According to an analysis by security researchers at Blockfence, malicious actors have created over 1,300 fraudulent

cryptocurrency

tokens since April 2023, stealing $32 million from over 42,000 victims. The operation appears to be more or less automated, with the created tokens often resembling those of companies or projects that have not yet announced or launched their tokens. The scammers then use fake trading volumes to lure traders. If there is a sufficient influx of legitimate funds, the fraudsters (assuming there is more than one) cash out the tokens and repeat the process.

While the contracts of these tokens may seem to have passed several security measures, the operators of the scam retain the ability to mint an unlimited supply of tokens (despite appearances of tokens being locked) and falsify the maximum token supply.