@DeDotFiSecurity Has reported a wallet has been discovered that profited over 200 $WETH, equivalent to approximately $400,000, through a series of rug pulls in the cryptocurrency market. The scammers behind this operation operated a MEME coin factory, generating a total of 31 tokens. They strategically added liquidity to these tokens, only to drain all the $WETH from the pool a few days later.
The Scammer’s Token Factory: A Tool for Fraudulent Token Generation
The scammer utilized a token factory that they themselves deployed, allowing them to create fraudulent tokens at will. Upon examination, it has been revealed that a total of 30 tokens were generated using this factory. This sophisticated tool gave the scammer the ability to carry out their fraudulent scheme and deceive unsuspecting investors.
Tracing the Scammer’s Initial Steps
One particular transaction sheds light on the scammer’s initial steps in executing their fraudulent scheme. By examining this transaction, we gain insights into how they operated. It is evident that meticulous planning and execution were involved in setting up the scam.
Exploiting Tokens and Removing Liquidity
The scammer’s primary method of profiting involved removing liquidity from the tokens they created. They would exploit the tokens, causing a substantial withdrawal of funds from the liquidity pool. In one specific instance, approximately $68,000 worth of ETH was withdrawn through the removal of liquidity using a particular token. It is important to note that this pattern was observed across all the tokens created by the scammer.
Tokens Yet to Be Targeted
At present, the scammer is operating three tokens that they have not performed a rug pull on. These tokens, although currently unaffected, are still subject to the risk of a rug pull. Investors should exercise caution and conduct thorough research before engaging with these tokens to avoid falling victim to the scammer’s fraudulent activities.
