NFT project Lucky Star suspected of $1 million exit scam

scam_expl-min scam
scam_expl-min scam

On October 9, the developers of the Lucky Star Currency (LSC) project, focused on non-fungible tokens, allegedly pulled off a fraudulent scheme, pumping out $1.1 million in liquidity, CertiK said.

According to analysts, the attackers called the “withdrawToken” function in the NFTMerge and AdwardCenter contracts. As a result, they withdrew over 3 million LSC and converted it into 1.1 million BUSD through PancakeSwap.

Experts concluded that it was an exit scam because the attacking account was a deployer of the AwardCenter contract.

Lucky Star Currency was positioned as a crypto project founded by astrologers and offered the services of an NFT marketplace and a “Reward Center.” The startup was actively advertised in the Chinese market through the Toutiao news application and the Zhihu Q&A platform.

On October 10, an alleged representative of the DAO project wrote in the Telegram channel that a third-party hacker was to blame for the situation. According to the statement, the team is conducting an investigation and preparing new smart contracts for deployment.

At the time of writing, the official Lucky Star Currency website is down.

Let us remind you that in the third quarter, losses of the crypto industry from hacking and fraud reached $685.5 million – 59.9% more than in the same period last year.

In May, the team at the DeFi project Fintoch allegedly committed an exit scam, withdrawing clients’ digital assets worth $31.6 million.

Previously, the developers of the decentralized exchange Swaprum based on the Arbitrum L2 network fled with $3 million in user assets, emptying the liquidity pools.

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