airdropstake.com Open in urlscan Pro
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CERTIK OUTLINES THREE CRYPTO EXPLOITS TARGETING DEFI USERS

�  cryptobriefing.com 18 January 2024 07:44, UTC



Blockchain security firm CertiK listed three common ‘honeypot’ schemes created
by exploiters to steal users’ crypto in decentralized finance (DeFi) in a report
titled ‘Honeypot Scams’ published on January 11.

Honeypots are deceptive schemes targeting crypto investors and often lure
victims with the promise of lucrative returns, only to trap their funds through
different mechanisms. The alluring price charts with continuous green candles
influence investors’ fear of missing out (FOMO), leading to impulsive buying.
Once bought, these tokens become illiquid due to specific mechanisms preventing
their sale.

The first mechanism is labeled by CertiK as ‘The Blacklist’, and its execution
consists of preventing users from selling scam tokens through a lock inserted
into the smart contract. The report gives an example by mentioning the
‘_snapshot list’ and ‘_snapshotApplied’ functions, which let users move tokens.
Both of them must be set as ‘True’ in the smart contract, otherwise, the user
will be blocked from transferring funds, acting as a ‘blacklist’.

Example of a ‘blacklist’ piece of code inserted into a smart contract. Image:
CertiK

Although the blacklist command could be seen via a smart contract check, CertiK
highlights that some blacklists are cleverly concealed within seemingly
legitimate functions, trapping unwary investors.

‘Balance Change’ is another common honeypot mechanism applied by scammers. This
technique involves altering a user’s token balance to a nominal amount set by
the scammer and it is only readable by the smart contract.

This means that block explorers like Etherscan won’t update the balance, and the
user won’t be able to see that the token amount was reduced by a significant
amount, usually just one token.

Example of a ‘balance change’ piece of code inserted into a smart contract.
Image: CertiK

The last common tactic used by exploiters on DeFi projects’ smart contracts is
the ‘Minimum Sell Amount’. Although the contract allows users to sell their
tokens, they can only do so when selling above an unattainable threshold,
effectively locking up their funds.

In this case, the user wouldn’t be able to sell even if the wallet has more
tokens than the threshold set. This is because of the function ‘infosum’ used in
this technique, which is considered on top of the amount set to be sold.

As an example, if a user buys 35,000 tokens from a project in which the smart
contracts set the selling threshold to 34,000 using the ‘infosum’ function, the
operation wouldn’t succeed. That’s because the user would have to sell 35,000
tokens plus the 34,000 set. In other words, the 34,000 extra tokens requirement
could never be met.

Example of a ‘Minimum Sell Amount’ piece of code inserted into a smart contract.
Image: CertiK


THE IMPACT OF HONEYPOTS

On top of the technical side of honeypot scams, exploiters also add a social
layer to the scheme, mimicking reputable crypto projects to deceive investors.
Moreover, bad actors devised a way to automate the creation of honeypots.
CertiK’s report mentions a wallet responsible for creating scam contracts every
30 minutes over two months. In total, 979 contracts connected to this service
were identified.

If an average of $60 was stolen, which is a fairly small amount compared to
larger scams on DeFi, approximately $59,000 would be taken from users over two
months. According to CertiK, this turns “vigilance and education” into an urgent
matter in DeFi.





   
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