Crypto Community Rattled by Major Exit Scam: CertiK Detects Liquidity Drainage from Counterfeit Meme Coin Project

Crypto Community Rattled by Major Exit Scam: CertiK Detects Liquidity Drainage from Counterfeit Meme Coin Project

Crypto News – A significant cryptocurrency scam has sent shockwaves through the crypto community, as a deceitful actor abruptly withdrew support from a previously endorsed project. CertiK, a renowned platform that provides real-time alerts about crypto hacks, recently communicated a disheartening update to the community, revealing the latest occurrence of an exit scam.

In a recent tweet, CertiK disclosed its detection of a substantial drainage of liquidity from a counterfeit version of a well-known meme coin project, specifically the Friend Tech token. The security firm underscored that the scammer behind this malicious deployment managed to amass a staggering 135 Ethereum (ETH) tokens through this exploitative act. The illicitly obtained funds totaled around $226.5k. In light of this incident, CertiK issued a cautious warning to the crypto community, urging them to exercise heightened vigilance and exclusively engage with legitimate projects.

While CertiK refrained from explicitly identifying the individual responsible for the scam, recent reports from Coin Edition shed light on a comparable case involving a Uniswap employee. In this instance, Uniswap took decisive action by terminating the employment of one of its developers, subsequent to confirming their involvement in a scam associated with the Frend Tech project. According to the report, this developer illicitly extracted liquidity from the meme coin project and proceeded to liquidate the amassed funds, resulting in a sum of $25,800.

In another exchange, CertiK underscored the alarming frequency of scams that have shaken the community over the past week. The report detailed a total of 12 scam incidents within this time frame, encompassing five Discord exploits, five phishing attacks, and three Twitter hacks. The cumulative impact of these incidents translated into a staggering loss exceeding $11 million over the course of the previous week. CertiK issued a resounding call for caution and emphasized the importance of conducting one’s own diligent research: “Stay vigilant and conduct thorough research,” the security update emphatically stated.

As for the recently targeted FriendTech project, a software engineer offered insights into the underlying operational mechanism of the genuine endeavor. The developer elucidated that the pricing dynamics for FriendTech shares are rooted in a pair bonding curve, an automated market maker mechanism employed for asset pricing.