Crypto Scam Watchdog’s crypto project got turned into a scam

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With crypto scams quickly becoming an easy cash grab for cybercriminals, numerous watchdog groups have launched to make sure no one gets screwed over. Unfortunately, a crypto scam watchdog group recently launched an NFT project that was quickly exploited, in essence, becoming a crypto scam.

It’s always unfortunate to see an organization become victim to a group they were built to fight but that’s just life. Will this crypto scam watchdog group recover from this hurdle and be better? Or is this the start of their downfall?

Crypto scam watchdog group gets crypto scammed

A report from web3isgoinggreat reveals that crypto scam watchdog group Rug Pull Finder had their NFT project exploited by cybercriminals. The report was confirmed by Rug Pull Finder, with the company apologizing to anyone who may have invested in the NFT project.

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“Everyone - we are truly sorry,” said the Rug Pull Finder Twitter account. “An exploit was shared with us 30 minutes before mint went live. After reviewing it with 3 different dev teams, we did not believe the credibility of the information sent to us. We were clearly wrong, and we are truly sorry”

Two people reportedly got away with 450 NFTs, when they should have only gotten one of them each. Rug Pull Finder does deserve credit for owning up to their mistake, though they should have known better when they received that warning.

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NFTs returned at a cost

Rug Pull Finder was able to find the two individuals responsible and reached a deal with them, buying back 366 of them for 2.5 ETH (~$4,000). Seeing the crypto scam watchdog group get crypto scammed and then having to pay extra for the NFTs back is sad but that’s just how it is.

While NFTs aren’t great, there are people invested in them and we hope incidents like this happen less. Rug Pull Finder will need to work on their security to make sure this doesn’t happen again, especially since they are a watchdog group that protects people against crypto scams.