Bitcoin Hype Leads Meme Token Traders To Wallet Drainer Attack

A troubling sequence of events resulted in unwitting dealers losing around $63,000 in Bitcoin. This loss occurred due to a cunningly designed BRC-20 token mint that swept through the Ordinals platform last Friday. Ordinals allow creators to “inscribe” NFT-like digital media on the Bitcoin blockchain.

The platform has experienced substantial growth due to its unique offerings. However, this growth has also attracted scams and exploits similar to those in other media. Last week they witnessed what some users call the most significant attack in the history of the Ordinals space.

On Friday, the Ordinals protocol introduced a purported meme token project named ORNG, which allowed users to mint a BRC-20 fungible token. The launch took place on what appeared to be the official Ordinals launchpad site known as Luminex, fooling several users.

However, Luminex was not involved, and the mint itself was illegitimate. The scam operated through a deceptive website named “Luminux” (notice the subtle vowel alteration). Shortly after, numerous Twitter users reported the depletion of their Bitcoin wallets. They believed they had initiated a legitimate transaction to mint the new meme token.

🚨⚠️ SCAM ALERT ⚠️🚨

Beware of @orangebrc 🍊 falsely claiming an association with Luminex. Their recent tweet includes a deceptive link 🔗.

This is a fraudulent act ❌ and there is NO official partnership with Luminex. Stay safe 🛡️ and always verify information before taking…

— Luminex (@luminexio) June 9, 2023

Scammers’ tactics in this incident resemble Ethereum NFT scams, draining wallets and employing familiar tactics for token drops. Sometimes, scammers create doctored websites comparing official platforms, using phishing-style attacks. Other times, they use compromised Twitter accounts linked to famous creators or brands to spread scams.

The precise amount stolen in this attack remains unclear. However, the wallet linked to the scam received approximately 2.37 Bitcoin, equivalent to roughly $63,000. Primarily on Friday, with fewer transactions occurring over the weekend.

People are asking me how I instantly knew the site was a drainer so here's a few tips – Feel free to share to spread awareness:

➡️ The site link was Luminux not Luminex. Instant Red Flag 🚩

➡️ Luminex only accept XVerse and Invoice. However, this site accepted XVerse, Unisat… pic.twitter.com/EWz8wu2O9K

— ali (@0itsali0) June 9, 2023

Subsequently, the Twitter account affiliated with the scam underwent a rebranding effort, potentially signaling another fraudulent scheme. Modifying the same falsified “Luminux” landing page promoted a new token mint. The identity of the individuals behind these scam mints remains unknown.

Warnings & Vigilance To Combat Scams

Luminex and Bitcoin wallet creator Xverse swiftly cautioned users about the scam, sharing details on avoiding falling victim to similar attempts. A spokesperson from Luminex informed that they promptly alerted their community “within minutes” of the scam’s launch.

Driven by FOMO, crypto/NFT traders ignore red flags, risking the vulnerability to scams in their pursuit of opportunities. In this case, the increasing excitement surrounding Ordinals projects and BRC-20 tokens may have misled eager minters.

The recently hyped launch of the OXBT token could be a contributing factor to this enthusiasm. The Luminex spokesperson emphasized the tendency for scams to exploit popular project trends, stating, “Scams often ride on popular project waves, as seen here.”

Related Reading | A Call For Clarity: Crypto Regulation In The US Amid SEC Lawsuits

They advised the community to exercise caution, double-check URLs, and await official announcements before engaging in new projects. The evolving cryptocurrency landscape demands vigilance, thorough research, and prioritized security measures. Traders and enthusiasts must protect themselves from fraudulent schemes.