PhishLabs contributes to an article in Threatpost covering this classic “rug pull” scam.
Originally published in Threatpost
Excerpt:
All it took to keep investors from selling was a simple piece of code, Joe Stewart, researcher with PhishLabs Fortra, explained to Threatpost.
“All the rules of how a token can be bought and sold are contained in the smart contract code itself, since these tokens are traded on a decentralized ‘automatic market-maker’ contract,” Stewart said. “Basically, it just needs an extra line of code in the transfer function to prohibit the swap from occurring in the ‘sell’ direction unless the transaction sender is the address controlling the contract (i.e. the developer who removed all the liquidity from the pool and absconded).”
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