Ethical Hacker Track Down StableMagnet Fraudsters Getting Away with $25M Rug Pull
With lots of genuine trading and DeFi platforms in the world of cryptocurrency, many scammers are also involved in these functions who have been scamming with the traders around the world. During an exclusive Cointelegraph interview on tracking down a group of the scammers of DeFi responsible for the $25 million StableMagnet rug pull. In the world of digital payments and finance, where the computer is the best choice as a weapon for the heist rather than a semi-automatic firearm. Tracking the scammers and frauds from across the world is going difficultly near-possible for the centralized police forces.
In the recent interview with Cointelegraph, a known cyber vigilante shares the information into how he tracked down a group of decentralized finance (DeFi) scammers who were responsible for the rug pull of $25 million StableMagnet, police authorities and eventually having the stolen money returned back to the investors as soon as possible.
##StableMagnet #rugpull $22m and growing. Its SwapUtils library code is NOT verified and *DIFFERENT* from main Swap contract: https://t.co/Ls5XNA5UXf. @bscscan There is a need to verify the library code!
— PeckShield Inc. (@peckshield) June 23, 2021
The StableMagnet platform lured unwary investors under the high returns against Stablecoin deposits. Later, the StableMagnet was managed to run away with the $25 million that was invested by almost 1000 users of the cryptocurrency market. This was a total rug pull played by the scammers with users.
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The cyber vigilante analyzed the code to ensure the legitimacy of the project prior to investing himself in the market right before the rug pull. Well, he remembered the messages on Twitter that alerts him on the possible exploits and vulnerabilities in the system. The vigilante, an active ethical hacker set out to track the scammers and bring the amount of the investors from those to pay justice. The unknown ethical hacker told Cointelegraph.
They started from tracking down the account of GitHub to identifying the family members of the scammers through the social media platform. Later, the group of vigilantes found a group of Chinese locals from Hong Kong. Later, the vigilantes tracked down the traveling status of the scammers to a Chinatown in Manchester. He took a matter in his own hand and booked a one-way flight to Manchester, contacted local police authorities set up a narrow timeline before scammers move to a different location at that time. The Greater Manchester Police worked softly on this matter and arrested a few scammers among all of them.
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During the investigation, police retrieved different pieces of a single USB device from those scammers, which carried around $9 million. Later on January 23, several accounts of the popular Crypto YouTubers were hacked and posted unauthorized videos with text directing viewers to send money to an unknown wallet.