Lucky Star NFT Project Rug Pulls Over $1M in Exit Scam

Chinese crypto project Lucky Star Currency conducted an exit scam, stealing over $1 million in funds from its smart contracts
Lucky Star NFT Project Rug Pulls Over $1M in Exit Scam
Lucky Star NFT Project Rug Pulls Over $1M in Exit Scam

According to a blockchain security study by Certik, the Chinese cryptocurrency project Lucky Star Currency engaged in an exit fraud wherein over $1 million in money were stolen from its smart contracts.

A marketplace and reward center for non-fungible tokens (NFTs) with an astrology theme are run by Lucky Star Currency. However, all Binance Smart Chain funds from the impacted platforms were immediately emptied on October 9 by the project’s deployer account.

Both the AwardCenter contract and the NFTMerge contract had almost 1.6 million and 1.4 million LSC tokens removed from them, respectively. The stolen tokens were immediately swapped for Binance USD (BUSD) stablecoin, worth more than $1 million. The stolen BUSD was transferred to an account that has been gathering money from different sources for months, indicating that multiple projects deposited stolen assets in the scheme.

The corrupted contracts were advertised on Twitter and Telegram as legitimate Lucky Star Currency platforms, according to Certik. Prior to the rug-pull exit scam, Lucky Star Currency heavily promoted itself on social media and news applications to Chinese cryptocurrency communities.

However, the project’s website, applications, and social media outlets were shut down when word of the heist spread. Given the pseudonymous nature of blockchain technology, victims have little options. In the midst of growing interest in NFTs and cryptocurrencies, Lucky Star Currency targeted the Chinese retail investing industry.

China has lately experienced a number of significant cryptocurrency thefts, including the $100 million hack of the cross-chain protocol Multichain in June that had an impact on over 340 projects.

Read Also: OpenSea Unaware of $60 Million Rug Pull’s Involvement by an Ex-executive

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