In the ever-evolving world of cryptocurrencies, tales of astonishing gains and unfortunate losses are a dime a dozen. However, every so often, an incident occurs that sends shockwaves through the crypto community. The latest addition to this list of unfortunate events is the Lucky Star Currency exit scam, which has left investors reeling from a loss of over $1 million.
Lucky Star Currency, a Chinese crypto project, had built its niche around astrology-themed non-fungible token (NFT) services, boasting an NFT marketplace and an award center. For a while, it seemed like a star shining brightly in the crypto galaxy. Yet, on October 9th, this seemingly promising project took a sinister turn when its deployer account executed a series of actions that drained all the Binance Smart Chain funds from its associated platforms.
In a swift and calculated move, more than 1.6 million LSC tokens were whisked away from the AwardCenter contract, followed by another 1.4 million LSC tokens from the NFTMerge contract. These tokens, like ghosts in the night, were instantly converted into over $1 million worth of Binance USD (BUSD) stablecoin. The trail of deceit didn’t stop there; the pilfered BUSD found its way into an account that had been silently amassing ill-gotten gains from various sources for months. This suggests a more elaborate scheme involving multiple projects depositing stolen assets.
Certik, a prominent blockchain security firm, confirmed the devastating truth: the compromised contracts had been actively promoted as the official platforms of Lucky Star Currency on social media platforms such as Telegram and Twitter. Before executing the rug pull exit scam, Lucky Star Currency had aggressively marketed itself to the Chinese crypto community on various social media and news applications.
As news of this audacious theft rippled through the crypto sphere, Lucky Star Currency’s online presence crumbled. Its website, apps, and social channels swiftly vanished into thin air. Unfortunately, the victims of this nefarious scheme find themselves in a precarious position, primarily due to the pseudonymous nature of blockchain protocols, which makes tracking down culprits an arduous task.
Lucky Star Currency’s audacious exit scam was meticulously timed to prey on the surging interest in NFTs and cryptocurrencies in the Chinese retail investment market. This incident serves as a grim reminder of the vulnerabilities that persist within the crypto landscape, even as it continues to evolve.
China, in particular, has been grappling with a series of high-profile crypto frauds, including the $100 million hack of the cross-chain protocol Multichain in June, which sent shockwaves through the crypto world, impacting over 340 projects.
The Lucky Star Currency exit scam is yet another chapter in the annals of crypto history, underscoring the need for increased vigilance and caution in this exciting yet perilous financial frontier.