114 Scams Revealed by Savvy Blockchain Investigators

by Arthur · April 28, 2023

Fraudsters are increasingly exploiting the popularity of meme coins for personal gain, leaving cryptocurrency investors vulnerable.

A single person has been identified as the mastermind behind the release of 114 questionable meme coins in just two months, according to reports.

ZachXBT, along with other internet experts, discovered that only one person was responsible for 114 meme coin scams.

The current wallet address is 0x739c58807B99Cb274f6FD96B10194202b3EEfB47 and the same deposit address is used each time funds are withdrawn.

Table of Contents

Meme Coins Scam Detected

After tracking down all the coins, he discovered that the fraudsters had effectively collected these cryptocurrencies while remaining relatively hidden by using multiple alternate wallet addresses and splitting the proceeds.

In the last 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) 26 April 2023

ZachXBT explained in a Twitter thread published on April 26 that he traced each scammer’s funds to the same deposit address.

Meme coins are digital currencies inspired by internet memes or jokes and usually lack significant utility or long-term applications.

Hype and value on social media

The value of these coins is largely determined by hype and conjecture on social media, as they usually have no practical use or underlying value.

“I suspect there are others too. These are simply coins sent to that deposit address hahaha,” ZachXBT replied on a comment.

A Twitter user named Lucrafund also did 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 key personal identifier.

This wallet has launched 2-5 memecoin blankets daily for almost 2 years in a row:

0xCc16D5E53C1890B2802d5441d23639CAc6cd646F

These developers are incredibly busy. Make sure you mark it on Etherscan so you don’t fill their pockets with your money

Absolute madness. pic.twitter.com/ffNQ4sTGls

— 💐Guru 💐 (@CoinGurruu) 26 April 2023

Another Twitter user named CoinGurruu identified an additional wallet address – 0xCc16D5E53C1890B2802d5441d23639CAcd644F – which allegedly launched two to five meme coin blankets per day for nearly two years.

Memecoins were introduced on the Binance Smart Chain (BSC) platform, which has become a popular place to create and trade new cryptocurrencies.

However, the platform’s lack of oversight and regulation has made it a prime target for fraudulent activities, such as the proliferation of meme coin scams.

The report also highlights the fact that the developers of meme coins did not reveal their identities, casting doubt on their intentions and credibility. This is a common strategy used by fraudsters to avoid detection and prosecution.

BTCUSD currently trading at $29,392 on the daily chart at TradingView.com

The tattoo

In a separate incident, ZachXBT exposed an additional alleged fraudster involved in the meme coin anomaly, Gabriel Marques (Twitter user NazareAmarga), who allegedly launched a fraudulent memecoin targeting holders of the legitimate Nakamigo’s NFT project.

Marques was recognized by the wallet address written on the back, which was visible in a post on social media.

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 Ether scam.

– Featured image from The Dales Report