Chinese Authorities Nab Suspect in Large-Scale Crypto Airdrop Identity Theft Case
Summary:
Chinese authorities have arrested a suspect allegedly involved in a StarkNet (STRK) airdrop scam. The individual is accused of identity theft, filing over 40 fraudulent Early Community Member Program (ECMP) airdrop forms, and claiming 40,000 STRK tokens. These were later transferred to an OKX wallet and converted into Tether (USDT), totalling over $91,000. The arrest brings to light a novel scam method within the crypto space, involving the theft of cryptocurrency airdrops on a large scale.
A suspected fraudster has been arrested by Chinese officials in relation to a StarkNet (STRK) airdrop scam. The suspect is believed to have impersonated others, using their identities to submit over 40 fraudulent airdrop applications through the Early Community Member Program (ECMP). Consequently, the individual claimed over 40,000 STRK tokens, originally intended for the victims. Subsequent to the airdrop, the accused moved the tokens to an OKX wallet and converted them into Tether (USDT) worth over $91,000, an April 30th local media report disclosed. The alleged criminal, known as Lan Mou, was apprehended in Guangdong Province on April 25, with a computer and two mobile phones seized by police. Identity theft on such a scale, with criminals claiming victims' cryptocurrency airdrops, seems to be a new phenomenon despite regular scams and phishing attacks in the crypto space. A crypto airdrop typically rewards early supporters of a given protocol with newly minted cryptocurrency. The airdrop initiative, launched by the StarkNet Foundation (which backs the Ethereum layer-2 Starknet network), saw 700 million STRK tokens airdropped on February 20. The aim was to honor Ethereum solo and liquid stakeholders, Starknet developers and users, and also non-Web3 ecosystem developers and projects. There was a stampede for the tokens, with the first 45 million claimed in under an hour and a half. On February 20, Banteg, a Yearn.finance developer who operates under a pseudonym, issued a warning: the majority on StarkNet’s eligibility list were likely airdrop squatters: professionals who target protocols scheduled to drop airdrops, harvesting them for financial gain. Banteg purported that roundabout 701,544 of the 1.3 million eligible wallet addresses were potentially tied to multiple or renamed GitHub accounts operated by these airdrop squatters, who typically exploit several addresses simultaneously to amplify their rewards. In March of last year, it unfolded that these airdrop hunters had managed to amass $3.3 million worth of tokens from the Arbitrum (ARB) airdrop and funnel them from 1,496 wallets into just two under their control. A word to the wise: keep an eye out for the crypto vigilante!
Published At
5/1/2024 12:29:50 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.