Solana users beware: A new scam is lurking in the shadows.
As per the latest crypto news, scammers have discovered a new and sneaky method to exploit Solana users, swiftly draining their crypto by burning tokens within seconds of purchase.
According to Slorg, a member of the Jupiter Core Working Group on Solana, these scammers are leveraging an in-built Solana token extension to discreetly wipe out their victims’ crypto assets. “Imagine you swap for a token, and your wallet confirms the transaction. But when you check, nothing’s there,” Slorg shared in a post on September 3rd.
One unfortunate user experienced this firsthand after swapping for a token named “RED,” which had a “Permanent Delegate” extension. This feature allowed scammers to burn all the tokens involved in the transaction just seven seconds after it was completed.
The Permanent Delegate extension is part of Solana’s Token 2022 standard and grants unrestricted privileges to delegates, enabling them to burn or transfer tokens without any limitations. While it’s intended for legitimate purposes—such as retrieving mistakenly transferred tokens or managing automatic payments—Solana acknowledges that it can be a “double-edged sword” with potential for abuse.
But why would scammers go to the trouble of burning victims’ tokens?
According to Slorg, there are a couple of reasons. First, some scammers thrive on creating chaos, using this method as a destructive prank. Secondly, by reducing the available tokens (float), scammers can manipulate the price, often profiting from as little as $50 per transaction.
Slorg shared an example from last November when a scammer launched multiple tokens, each netting small profits, but collectively raking in thousands of dollars weekly.
Blockchain security experts at Beosin and PeckShield support these theories. They suggest that by burning tokens, scammers can manipulate the tokenomics, impacting the circulating supply and misleading users about the true number of tokens in circulation.
To counter this, Jupiter and RugCheck have developed indicators to alert users when this extension is active.
However, Slorg stresses the importance of due diligence. He advises users to stick to a routine, thoroughly read all details during transactions, and stay informed about new token features. Without caution, the cost of a careless transaction could be steep.
Crypto news suggests that this isn’t an isolated incident, as others have reported falling victim to similar scams recently.
