NFT project Lucky Star suspected of a $1 million exit scam

On October 9, the developers of the NFT-focused non-fungible tokens project Lucky Star Currency (LSC) allegedly carried out a fraudulent scheme, draining liquidity of $1.1 million. CertiK said as much.

#CertiKSkynetAlert ?

We can confirm an exit scam on @AstrAstrol75591 LSC token

Bsc: 0x2b3559c3DBdB294cbb71f2B30a693F4C6be6132d

EOA 0x9Ef withdrew LSC tokens from the AwardCenter contract. Tokens were then sold for $1.1mhttps://t.co/sy7vFfqhf5

— CertiK Alert (@CertiKAlert) October 9, 2023

According to analysts, the attackers invoked the withdrawToken function in the NFTMerge and AdwardCenter contracts. As a result, they withdrew more than 3 million LSC and converted them into $1.1 million BUSD via PancakeSwap.

Experts concluded it was an exit scam, since the attacker учетная запись is the deployer of the AwardCenter contract.

Lucky Star Currency was positioned as a crypto project founded by astrologers and offered NFT marketplace services and a “Rewards Center.” The startup was actively advertised in the Chinese market through the news app Toutiao and the Q&A platform Zhihu.

On October 10, allegedly a representative of the ДАО project wrote in a Telegram channel that an external hacker is to blame for the situation. According to the statement, the team is conducting an investigation and preparing to deploy new smart contracts.

As of writing, the official Lucky Star Currency website is offline.

In the third quarter, losses in the crypto industry from hacks and scams reached $685.5 million — up 59.9% from the same period last year.

In May, the DeFi project Fintoch allegedly committed an exit scam, withdrawing clients’ digital assets totaling $31.6 million.

Earlier, the developers of the decentralised exchange Swaprum on the L2-network Arbitrum disappeared with users’ assets totaling $3 million, draining liquidity pools.