The token’s smart contract has a backdoor function that could potentially allow scammers to manipulate a user’s wallet balance.
Hackers are once again targeting the cryptocurrency scene, as a strange token tagged FTX 2.0 was recently created and is being airdropped to wallet addresses belonging to Justin Sun, Binance, and KuCoin. The token’s smart contract contains a backdoor function that could allow the hackers to burn the balance of any address that interacts with the token.
Following the creation of the token, the scammers sent its total supply, amounting to 1,000,000,000 (1 billion), to an FTX Exchange wallet address on January 19, 19:04 (UTC), as first detected by blockchain security platform Peck Shield through its Twitter handle today.
#PeckShieldAlert Scammers are sending FTX 2.0 to FTX exchange, pretending to be the FTX exchange to add liquidity, and then airdropping to @justinsuntron, Kucoin, and Binance. They are tricking people into thinking it is the official FTX airdrop. Be alert!https://t.co/N20RBBB6UY pic.twitter.com/tLi0VO3DpB
— PeckShieldAlert (@PeckShieldAlert) January 20, 2023
The tokens were then routed through the FTX Exchange wallet to several wallet addresses, including four Binance addresses, an address belonging to Justin Sun, and one KuCoin address. The scammers used the FTX Exchange wallet to create an illusion of official affiliation with the exchange. The trick is to make people believe the token is an official FTX airdrop.
The hackers found a way to include a backdoor function to the token’s smart contract which would allow them to burn the balance of any wallet that interacts with the token, Peck Shield disclosed. Investors are advised to not interact with it. As of press time, the token has 83 holders with zero liquidity.
The scam token FTX2 also has the backdoor functions, which may arbitrarily manipulate any account's balance: 👇 Here is the token address: https://t.co/rCM0A4r8qI @SBF_FTX https://t.co/4FbUVyKiH2 pic.twitter.com/f4ErFGMbOu
— PeckShield Inc. (@peckshield) January 20, 2023
FTX.com Revival Plans
It is not coincidental that this development comes shortly after John J. Ray III, FTX’s current CEO, disclosed that he has the intention to restart FTX.com, the primary exchange of the FTX ecosystem. Hackers could be looking to leverage the reports in an attempt to trick people into believing there is an official FTT airdrop with regard to the rejuvenation plans.
Recall that Ray had revealed that he and his team are considering plans to restart FTX.com as a way to take advantage of the platform’s robust offerings in gathering funds for creditor settlement. He noted that he has established a task force to look into the possibility of doing this.
In response, FTT, FTX’s native token, surged by 34% within 2 hours, as previously reported. SBF also responded to the reports, alleging that Ray had been working against previous plans to resurrect the exchange.