Investors Lose Over $1 Million in Fake Metamask Token

Tanvir Zafar
Published: Dec 30, 2021, 16:44 GMT+00:00

Fake MetaMask token was released on Uniswap platform.

BitMart Losses $196 Million to Hacker

On 27th December, some crypto enthusiasts lost about $1 million through investing in a bogus Metamask token. The scam occurred after Metamask recently announced plans to airdrop their native tokens. While investigations are still underway, Dextools has been criticized for misinforming the public on the token. The scam is one of the several crypto scams that occurred during this holiday period.

Some assume that the token successfully lured investors by capitalizing on Metamask’s plan. After creating the token contract, investors purchased it using their Ethereum on the Uniswap exchange. This scam took the honey pot style, where the investors buy the token, but the smart contract prevents them from selling. Once a person invested in the Mask scam token, their money was gone for good. In fact, after investing, some tried to send their funds with no success.

Immediately after hitting $1 million, the token creators withdrew the entire amount to Tornado Cash, a crypto mixer. The exact amount of ETH withdrawn was $475, according to Etherscan.

Dextools Misinformed the Public

As soon as investors noticed issues, rumors began to go around that the project was a scam. Dextools is one of the platforms which faced social media backlash after the scam information.

It appears that there was some misleading information on Dextools’ web page that allowed the criminals to scam people. According to some sources, a popup on the network assured investors that the coin was legitimate.

Coby.Eth, a crypto enthusiast on social media, was among the people who criticized Dextools for allowing such occurrences. He tweeted; “How did someone make a fake $MASK token and scam hundreds of ETH by exploiting DexTools?”

Coby then highlights the entire process of how the scammers took advantage of the platform. First, the scammers injected the code into the title and description on Dextools. The website executed the command and gave a verified status. He also mentioned that since Dextools coding is faulty, their site showed the coin as legitimate. The platform is yet to comment on their role in the recent honey pot scam.

Multiple Crypto Scams This Holiday Season

The bogus Metamask token is not the only scam in the crypto space. Around three scams have occurred on different networks during this holiday period. On December 26th, the MetaswapMGAS project stole 1100 BNB tokens worth over $550k through a rug pull.

On the 27th, another project called MetaDAO also stole 800ETH worth over $3.2 million using rug pulls. Like the MetaMask scam, MetaDAO also transferred the funds to Torado Cash.

It is wise for investors to be careful during the festivities to avoid any other losses as bad actors are clearly taking advantage of it. All the same, investors are waiting to see how things pan out with the Mask token.

About the Author

Tanvir Zafarcontributor

Tanveer Zafar is a independent crypto journalist. He is passionate in covering topics about Blockchain, Cryptocurrency and Markets. He has five years of writing experience in these areas of interest. You can find his pieces featured on FXStreet, Benzinga, Investing and many more finance magazines. Tanveer has done his BS in Software Engineering at GC University. Previously, he has worked as a banker.

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