By generating meme currencies and then abandoning them, an unnamed fraudster has made almost $315,000 in Ethereum (ETH).
In a series of tweets, the blockchain research tool Lookonchain exposed the scammer’s strategies by giving Etherscan URLs to the four meme coins used in the scheme: TOMMY, KSI, ZUCK, and BILL.
The fraudster’s method involved using a little amount of ETH to create a meme currency that served as liquidity to win over investors. The con artist would withdraw the liquidity after a large enough investment had been attracted, thus seizing the investment for themselves.
For instance, the fraudster who created the TOMMY meme coin using 1.5 ETH ($3,200 at the time of withdrawal) from cryptocurrency exchange KuCoin eventually left with 28.7 ETH, netting an amazing 1,813% return.
The con artist used the same method to generate 140 extra ETH using the KSI, ZUCK, and BILL meme currencies. Since then, the scammer has boosted liquidity and produced the meme currencies WALTER2.0 and GIGA2.0, but no withdrawals have been observed. Potential investors were warned about the problem and recommended to stay away from these two coins by Lookonchain.
The current occurrence highlights the market’s inherent vulnerabilities, where great gains frequently go hand in hand with significant risk.
Lookonchain emphasises the need of investor education in the quickly changing and sometimes unregulated world of cryptocurrencies by cautioning investors to exercise caution and investigate the creators of any meme coins they are thinking of purchasing.
