Analysis of the inherent fraud patterns on the blockchain! Cybersecurity company PeckShield warns to avoid cryptocurrencies or NFT projects with these characteristics
The cybersecurity company PeckShield stated that it analyzed recent fraud cases, identified the patterns of malicious actors, and advised investors to be cautious.
Table of Contents
Three Major Behavioral Patterns
1. Creating Token Contracts by Injecting Funds through Money Laundering Protocol Tornado.Cash
The creators of smart contracts obtain funds directly or indirectly from the money laundering protocol Tornado.Cash, deliberately creating difficult-to-trace on-chain fund paths. Naturally, there are few traceable identity clues.
2. Creating the Illusion of Price Increase by Distributing Funds from the Same Address to Multiple Addresses
Malicious actors use the same address to distribute funds to multiple addresses and use bots to buy on decentralized exchanges, creating the illusion of a price increase to stimulate buying interest.
3. Selling Restrictions for Ordinary Investors
These fraudulent smart contracts have token selling restrictions, where only the aforementioned automated trading bots can sell. Ordinary investors are unable to execute sell orders.
Sell Restriction Code:
Of course, the online behaviors and smart contract codes mentioned above may be difficult for those without an information technology background to discern. Currently, similar situations are mostly investigated through community collaboration. However, the first type of behavior may not be fair to development teams who wish to remain anonymous.