Cyber Vigilante Hunted Down DeFi Scammers Running Away With $25M Rug Pull

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In the realm of digital currencies, bad actors do not need a semi-automatic firearm for a heist but rather a computer as a simple weapon choice. As a result, tracking down and monitoring these frauds and scams across the globe has become a very difficult feat for centralized security agencies.

However, light now seems to show at the end of the tunnel as an anonymous cyber vigilante during an interview with Cointelegraph gave an insight into tracking down scams. According to reports, the number vigilante had initially tracked down a group of DeFi fraudsters responsible for the StableMagnet rug pull, carting away with $25 million. The cyber vigilante in collaboration with the police was able to track down the scammers, recover stolen funds, and distribute them back to besties.

The scammers via the StableMagnet platform we’re able to entice unsuspecting investors under the guise of offering high returns on stablecoin deposits. But unfortunately, following a typical rug pull event, the scammers carted away with approximately $25 million. According to reports about 1000 users own the combined 25 million dollars that were carted away.

The cyber vigilante, moments before the rug pull, analyzed the code to make sure the project is legitimate as it claimed he was going to be the platform. However, he missed out on some vital cues on Twitter warning him of the platform’s possible vulnerabilities and exploits within the system.

The cyber vigilante, an enthusiastic ethical hacker took things personally and decided to track and bring the scammers to justice. According to him, as soon as the rug pull took place, he felt at that moment that that was the only opportunity for him to make a positive impact. He believes most victims of the rug pull won’t have the time to track and bring the scammers to justice, hence, the responsibility fell on him.

The cyber vigilante kicked off his investigation by tracking down a GitHub account. From the account, he was able to locate and identify the scammer’s family members via their social media accounts. The vigilante identifies the family members to be Chinese locals residing in Hong Kong.

Finally, the vigilante was able to track down the fraudsters’ travel to a Chinatown in Manchester. A temporary move by the scammers as they considered it smart to lay low until the commotion subsides. However, that didn’t work as planned for the scammers as the anonymous vigilante caught up with them. According to the vigilante, he doesn’t want one of the scammers to go to jail given his dislike of centralized forces interfering in the decentralized world.

Furthering his research, the anonymous vigilante took the next flight to Manchester while reaching out to local authorities. He cited a narrow timeline opportunity to apprehend the scammers before they could change location. In awe, the vigilante watched as the Manchester Police reacted rapidly and arrested some of the scammers.

The police were able to recover several fractions of a USB device during the raid. The USB is said to contain approximately $9 million. Immediately the news of the raid hit the news, the vigilante affirmed that the rest of the group (scammers) then knew he wasn’t BSing about finding them. At that moment the scammers knew they would get caught, it’s just a matter of when.

Following this, other members of groups began to cooperate with the cyber vigilant, returning but heelk of the money stolen. Since this event, the anonymous vigilante’s message ” it’s definitely a bad idea to scam, most especially on the Binance Smart Chain” rang loud and clear across the crypto industry

On the 23rd of January, the crypto industry recorded cyberattacks and hack attempts as famous crypto YouTube accounts were hacked. The hackers simultaneously uploaded an unauthorized video on the YouTube accounts telling subscribers to send funds to an unidentified wallet.

During an interview with Cointelegraph, Michael Gu, one of the YouTubers whose account was hacked claimed the video was posted without his approval. However, luckily for him, he and his team were able to delete the video within 2 minutes protecting his subscribers from such scams.

Although, that wasn’t the case for subscribers of other popular crypto YouTubers. Some subscribers feel a victim to the scam, sending various tokens to the unidentified crypto wallet.

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