Add Robinhood Markets (HOOD) to the list of parties affected by crypto frauds – the online brokerage’s social media profiles on Wednesday promoted the launch of RBH, a new scam token on the BNB Chain.
The crypto ecosystem was quick to presume that Robinhood’s social accounts, which have 1.6 million followers across Instagram, Twitter and Facebook, had been hacked, and that the launch of the RBH token on the Binance Smart Chain was a fraudulent crypto project.
Binance CEO Changpeng Zhao said the situation “looks like Robinhood account got hacked” and stressed the importance of critical thinking when assessing the promotion of a coin on the BNB Chain.
“Based on our ongoing investigation, we believe the source of the incident was via a third-party vendor,” said Robinhood in a statement after becoming aware of the unauthorized posts from its social media profiles.
Moreover, when conducting a trade between wrapped
BNB (wBNB) and RBH on PancakeSwap, a crypto exchange built on the BNB Chain, users are warned before executing the trade that the RBH token comes from an “unknown source” and is “high risk.”
How it happened:
The scammer then activated a transaction to add the 100 million RBH tokens and 3.1 wrapped BNB tokens as liquidity into the PancakeSwap liquidity pool.
The grift culminated when Robinhood posted the launch of the scam token on its social media accounts, which increased the volume sales in the liquidity pool composed of the two assets: wBNB and RBH.
Roughly $3.7 billion were lost to various attacks, hacks and scams in 2022, per Blockchain Security Firm CertiK. It remains to be seen how 2023 will fare. DYOR always.
(CORRECTION Jan. 25 21:50 UTC): Fixes the numbers on the texts related to PancakeSwap.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.