Identity Theft Linked to StarkNet Airdrop: Chinese Authorities Arrest Suspect
Summary:
Chinese authorities have arrested an individual named Lan Mou for identity theft linked to the StarkNet (STRK) airdrop. The suspect allegedly forged identities to claim more than 40,000 STRK tokens, valued at over $91,000 in Tether (USDT), that originally belonged to other people. The case shed light on wide-scale identity theft and fraud, although it is the first of such magnitude. The StarkNet Foundation carried out the much-anticipated airdrop, aimed at rewarding Ethereum solo and liquid stakes, Starknet developers and users, as well as projects and developers outside the Web3 ecosystem. However, the scheme has allegedly been infiltrated by airdrop squatters, who farm protocols with upcoming airdrops for financial gains.
Authorities in China have detained an individual thought to have committed identity fraud linked with the StarkNet (STRK) airdrop. The accused is believed to have seized other people's identities and submitted over 40 counterfeit Early Community Member Program (ECMP) airdrop forms, fraudulently claiming more than 40,000 STRK tokens originally belonging to the victims. Following the airdrop, the perpetrator shifted over 40,000 STRK tokens to an OKX wallet, which were then exchanged for over $91,000 worth of Tether (USDT), as per local media reports on April 30.
Lan Mou, the alleged culprit, was arrested by Guangdong Province police on April 25, with a computer and two mobile phones seized in the process. Although deceptive schemes and fraudulent activities are rife in the cryptocurrency sector, large-scale identity theft for claiming others' airdrops appears unprecedented.
A cryptocurrency airdrop refers to the distribution of a new cryptocurrency, typically to early users who have engaged with a specific protocol. The StarkNet Foundation – the body backing the Ethereum layer-2 Starknet network – launched a 700 million STRK token airdrop on February 20. The airdrop was primarily aimed at rewarding Ethereum solo and liquid stakes, Starknet developers, users, as well as projects and developers external to the Web3 ecosystem.
The airdrop attracted widespread attention as the first 45 million STRK tokens were claimed in under 90 minutes. However, on February 20, an anonymous Yearn.finance developer named Banteg alerted that the StarkNet’s eligibility list chiefly incorporated airdrop squatters — professional airdrop hunters strategically farming protocols with an impending airdrop for financial gain.
As per the developer, roughly 701,544 of the 1.3 million qualified wallet addresses were allegedly associated with repeat or renamed GitHub accounts run by airdrop squatters. This group typically farms the same airdrop using several addresses to maximize the rewards. In March 2023, it surfaced that from 1,496 wallets, airdrop hunters aggregated $3.3 million worth of tokens from the then Arbitrum (ARB) airdrop into just two wallets under their control. On a closing note, let's stay vigilant against scammers in the crypto world!
Published At
5/1/2024 1:20:32 PM
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