Astrology-Themed NFT Project Lucky Star Currency Performs Exit Scam
The blockchain security firm Certik has reported that the astrology-themed NFT project Lucky Star Currency (LSC) has conducted an exit scam, resulting in a loss of over $1 million. The project’s deployer account withdrew LSC tokens from the AwardCenter and NFTMerge contracts and exchanged them for Binance USD stablecoin before transferring them to another account.
Background on Lucky Star Currency
Lucky Star Currency is an NFT project that claims to be founded by astrologists. It offers an Award Center and NFT Marketplace and primarily targets the Chinese crypto investment market. The project was promoted on social media platforms like X (formerly Twitter) and Telegram, but as of October 9, its website and user interface are offline. Prior to the exit scam, Lucky Star Currency received significant promotion on Chinese news app Toutiao and Q&A platform Zhihu.
Details of the Exit Scam
The exit scam occurred when a BNB Smart Chain address removed over 1.6 million LSC from the AwardCenter contract and an additional 1.4 million LSC from the NFTMerge contract. The attacker then swapped the funds for over $1 million in BUSD via Pancake swap and sent them to another account. This receiving account has been receiving BUSD from various sources for the past 82 days, suggesting involvement in other scams.
Certik’s Findings
Certik confirmed that the drained contracts were listed on Telegram as Lucky Star Currency’s official contracts. Additionally, blockchain data revealed that the attacking account was also the deployer for the AwardCenter contract.
Rug-Pulls in Chinese Projects
This exit scam is another example of rug-pulls in Chinese projects, which have become a recurring issue in the Web3 space. Centralized cryptocurrency exchanges are illegal in China, making users who deposit funds into Chinese protocols with centralized elements vulnerable to potential confiscation by the police. In July, over $100 million was lost when the China-based Multichain protocol drained all user funds, leaving victims searching for answers and reimbursement.
Hot Take: Exit Scam Highlights Risks in Chinese Crypto Projects
The Lucky Star Currency exit scam serves as a reminder of the risks associated with investing in Chinese crypto projects. Rug-pulls and scams continue to plague the industry, causing financial losses for unsuspecting investors. It is crucial to conduct thorough research and due diligence before participating in any project, especially those operating within jurisdictions with regulatory uncertainties. By staying informed and cautious, you can mitigate the chances of falling victim to exit scams and protect your investments.
By
By
By
By
By