Crypto investors and market participants are being targeted by a recent surge in faux meme coin scams. These memecoin scams offer no real value or use case and are designed solely to defraud unsuspecting investors.
One cryptocurrency wallet, identified as pocket tackle, has allegedly launched 114 memecoin scams in the last 45 days alone. On-chain investigator ZachXBT identified that stolen funds from the scams are being sent to the same deposit address every time.
Over the past 1.5 months one person has created 114 meme coin scams.
Each time stolen funds from the scam are sent to the exact same deposit address.
— ZachXBT (@zachxbt) April 26, 2023
However, ZachXBT also suggested that there could be more scams associated with this wallet address’s holder (s), and the total amount of funds involved in the alleged scamming activity remains unknown as the alleged scammer used multiple wallets to split up the funds.
“These are just ones sent to that deposit address, lol,” ZachXBT added in response to a comment.
Koullou Crypto, another Twitter user, revealed in a comment that the wallet is associated with Coinbase, implying that the alleged scammer may have been trying to launder the stolen funds through the exchange.
When asked why he believes this activity hasn’t been reported to Coinbase yet, ZachXBT responded that it might be difficult to spot the alleged scamming activity because the funds are typically sent in smaller amounts at a time.
Another Wallet Reportedly Releases 2–5 Rugs Daily
Similarly, another Twitter user, CoinGurruu, also identified an alleged scammer wallet address, that has allegedly launched 2–5 memecoin scams daily for almost two years.
This wallet has launched 2-5 memecoin rugs daily for almost 2 years straight:
These devs have incredible hustle. Make sure you label it on Etherscan so you don't line their pockets with your money
Absolute insanity. pic.twitter.com/ffNQ4sTGls
— 💐Guru 💐 (@CoinGurruu) April 26, 2023
According to Guru, it costs just about $500 to $800 to deploy a crypto token on the Ethereum network, and the alleged scammers have made enough money that there isn’t much risk involved.
The prevalence of these scams underscores the need for investors and market participants to exercise caution and do their due diligence before investing in any crypto token.
Finally, it remains to be seen if Coinbase or KuCoin, where the alleged scammers are keeping their stolen funds, will take any action in response to these scams.