Blockchain security experts uncover two popular scam projects
- PeckShield has declared Freedom Protocol and Raccoon Network as scam projects.
- The blockchain security firm revealed that two addresses belonging to the two protocols have moved around $20 million BUSD to another address.
With the alarming rate of scams in the crypto industry, blockchain security company PeckShield has sounded the alarm about Freedom Protocol and Raccoon Network as scams. The industry-leading blockchain security company called out the two crypto protocols in a Twitter thread, exposing their fraudulent practices. Freedom Protocol refers to itself as the highest paying auto-staking & auto-compounding protocol. The protocol says it has the largest fixed annual percentage return (APY) of up to 183,394.2 percent. It also adds on the website that every holder of the token, $FREE, receives a reward with automatic compounding interest paid every 15 minutes.
On the other hand, Raccoon Network is a metaverse company that allows players to build, own and monetize their data. Raccoon Network says it is “based on blockchain technology, powered by smart contracts, where everyone is a creator of a meta-universe, organized to work based on the DAO.”
PeckShield declares Freedom Protocol and Raccoon Network scams
IN Twitter thread, PeckShield highlighted two addresses, each belonging to Freedom Protocol and Raccoon Network. BscScan also confirmed that both addresses belong to the fraudsters. According to the blockchain security company, they have transferred about 20 million $BUSD to another address. This address that received the deposit is worth almost 21 million USD.
#PeckShieldAlert #fraud PeckShield has detected @RACNETWORK and @freedomprot is fraud. $RAC address: https://t.co/3St3spDmG2
Freedom Protocol Token $ FREE address: https://t.co/6KB2bK3NKu
Fraudsters have already transferred ~20m $BUSD (IDO) to 0xf800…469336 pic.twitter.com/ahgsW4itb1— PeckShieldAlert (@PeckShieldAlert) July 20, 2022
The issue of fraud in the crypto space is not a new development. Despite many warnings and cautions, many have fallen victim to this fraudulent practice. Also, several industry leaders have discussed fake crypto products on various occasions.
Sam Bankman-Fried of the crypto exchange FTX recently warned about crypto products that are empty and similar to Ponzi schemes. As such, the value of these crypto projects largely depends on the money invested in them. Noting the difficulty of distinguishing high-value products from Ponzi schemes, Bankman-Fried added that exchanges such as FTX and Binance are responsible for identifying these types of products. In addition to recognizing them, these crypto exchanges are committed to removing them to protect investors.
How can you protect crypto assets?
Furthermore, experts have noted how investors can protect crypto and avoid falling victim to scammers. These crypto wizards draw investors’ attention to pump and dump schemes and warn them to avoid them.
They added that crypto investors should also be wary of blanket pulling, which primarily results in losses. More importantly, crypto fans must be observant and constantly look for common signs associated with precious scammers. Investors must confirm the reputation of the projects they are interested in before putting money into them. A top sign to ensure the credibility of a crypto project is to check if experts from well-known security firms have audited it.
Last month, Crypto Leaks launched a platform to combat crypto fraud. The project’s first two cases involved the attack on ICP token investors. The forum was able to reveal the actions behind the event, proof of the effectiveness of the newly launched tool.
