Scammers are increasingly exploiting the popularity of meme coins for personal gain, leaving cryptocurrency investors vulnerable.
A single individual has been identified as the brains behind the release of 114 questionable meme coins in just two months, according to reports.
ZachXBT, along with other internet sleuths, discovered that only one person was responsible for 114 meme coin frauds.
The wallet address in question is 0x739c58807B99Cb274f6FD96B10194202b3EEfB47, and the same deposit address is used each time funds are taken.
Meme Coins Scam Detected
After tracing all the coins, he discovered that the fraudsters had effectively amassed these cryptocurrencies while remaining relatively concealed by employing multiple alternative wallet addresses and dividing the proceeds.
Over the past 1.5 months one person has created 114 meme coin scams.
Each time stolen funds from the scam are sent to the exact same deposit address.
0x739c58807B99Cb274f6FD96B10194202b8EEfB47 pic.twitter.com/uwVAiG9WGG
— ZachXBT (@zachxbt) April 26, 2023
ZachXBT explained in a Twitter thread published on April 26 that he tracked each scam’s funds to the same deposit address.
Meme coins are digital currencies inspired by internet memes or jokes and typically lack significant utility or long-term applications.
On Social Media Hype And Value
The value of these coins is largely determined by social media hype and conjecture, as they typically have no practical use or underlying value.
“I suspect there are others as well. These are simply coins sent to that deposit address hahaha,” ZachXBT responded to a comment.
A Twitter user named Lucrafund also conducted some research, posting a screenshot on the thread that revealed the “criminal mastermind” had sent a portion of the stolen funds to a Coinbase address, effectively revealing a crucial personal identifier.
This wallet has launched 2-5 memecoin rugs daily for almost 2 years straight:
0xCc16D5E53C1890B2802d5441d23639CAc6cd646F
These devs have incredible hustle. Make sure you label it on Etherscan so you don’t line their pockets with your money
Absolute insanity. pic.twitter.com/ffNQ4sTGls
—
Guru
Another Twitter user by the name of CoinGurruu identified an additional wallet address – 0xCc16D5E53C1890B2802d5441d23639CAcd644F – that allegedly launched two to five meme coin rugs per day for nearly two years.
The memecoins were introduced on the Binance Smart Chain (BSC) platform, which has become a popular venue for the creation and trading of new cryptocurrencies.
However, the platform’s lack of supervision and regulation has made it a primary target for fraudulent activities, such as the dissemination of meme coin scams.
The report also emphasizes the fact that the developers of meme coins did not reveal their identities, which casts doubt on their intentions and credibility. This is a common strategy employed by con artists to avoid detection and prosecution.
In a separate incident, ZachXBT exposed an additional alleged fraudster involved in the meme coins anomaly, Gabriel Marques (Twitter user NazareAmarga), who allegedly launched a fraudulent memecoin aimed at holders of the legitimate Nakamigos NFT project.
Marques was recognized by the wallet address inscribed on his back, which was visible in a social media posting.
According to ZachXBT, the wallet address tattooed on Marques, which is visible in an online social media post, was significantly involved in the alleged $110,000 worth of Ether scam.
-Featured image from The Dales Report