The analytics company @lookonchain, which monitors the wallets of crypto titans like “Smart Money” and others, has reported a resurgence in fraud activity. This time, they are luring investors into purchasing bogus meme cryptocurrency by utilising fake wrapped Ethereum tokens. To achieve that, they claim to be leveraging the wallets of well-known blockchain firms.
@lookonchain cautioned the cryptocurrency community that these activities may make it appear as though well-known wallets are purchasing meme cryptocurrency rather than fraudsters. As a result, he advised crypto users to be cautious and avoid copying those addresses’ actions.
Scammers are really making it appear as though major cryptocurrency organisations are purchasing meme coins (fake ones), anticipating that unsophisticated investors would fall for it and start purchasing these phoney meme cryptocurrencies.
Scammers luring investors using famous wallets
The source demonstrates how scammers manufacture phoney WETH, claim to purchase it from a large company’s wallet (DWF Labs was specifically stated in the tweet), and then imply that DFW Labs is providing liquidity for a meme currency (a false one).
Users opt to participate after seeing these transactions on wallet monitors, reasoning that since DWF is supporting this currency in a DeFi pool, it is undoubtedly “worth looking into.” This scam is depicted in pictures posted by @lookonchain and involves a phoney DWF wallet and a fake MOME cryptocurrency.
The tweet further claims that it is quite simple to incorrectly think that DWF Labs actually purchased “PSYOP” tokens using “WETH” if you look at these transactions on Debank or Zerion. Details of the transfers, however, demonstrate that DWF Labs was not the source of the transaction. Additionally, they posted images of both genuine transactions in which DWF purchased LADYS joke coins and phoney ones in which they seemed to be the buyer.
In recent months, fake WETH and false meme currencies have been used in fraud transfers, according to @lookonchain, who advises Twitter users to examine the address that originated the transaction to ensure that it does, in fact, belong to a well-known blockchain organisation.
