This fake transaction has been uncovered by a person known as ‘quit’ who has a strong interest in crypto. Their Discord server is configured to track BAYC and MAYC listings in Ether that are at least 5 percent below the base price. Quit said on Twitter, “It is rare but when it happens it means that someone is selling hasty or someone has been cheated. When I saw the notification, I immediately knew that it was fraud. case.” He said that the user with whom the scam happened had not only transferred his NFTs to a scammer, but he was also the one who initiated the trade.
Quit reported that Swap.Kiwi verifies that the tokens are valid by showing a green checkmark but this can be easily changed through an image editor on the UI, and that’s exactly what scammers did in this case. They were sold by the scammers soon after receiving the BAYC and two MAYC NFTs.
Recently, two people were arrested in the US for money laundering and fraud with their NFT series called ‘Frosties’. These people had caused a loss of around $11 million to the buyers before leaving their NFT project. Such cases are called ‘Rig Pull Scams’, in which NFT projects or cryptocurrencies from creators quickly disappear after being sold. The US Justice Department (DoJ) has been looking for the creators of the NFT series Ethan Nguyen and Andre Llacuna since a complaint was filed earlier this year. Both of them were arrested from Los Angeles.
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