BASE and Ethereum Networks Targeted by Sophisticated Rug Pulls and Political Meme Coin Scams

Emerging blockchain networks, particularly Coinbase's Layer 2 solution BASE, are becoming prime targets for scammers employing rug pulls and politically themed meme coin schemes. Reports indicate a significant rise in these fraudulent activities across BASE, Ethereum, BSC, and Polygon, exploiting the rapid growth and lower transaction fees of these platforms.

Key Takeaways

• Scammers are exploiting BASE's low fees and ease of setup, mirroring early trends on Binance Smart Chain.
• Politically charged meme coins are a growing tactic, capitalizing on election season sentiment.
• Trugard Labs identified five high-severity vulnerabilities, including Hidden Mint and Malicious Boolean Checks, affecting multiple chains.

BASE: A New Frontier for Scammers

BASE's increasing popularity, driven by low fees and scalability, has unfortunately attracted malicious actors. Similar to the early days of Binance Smart Chain (BSC), BASE's rapid adoption has made it a fertile ground for scams. Scammers are leveraging the network's affordability to launch frequent, low-cost attacks, ranging from classic rug pulls to politically motivated meme coins designed to capitalize on current events and investor sentiment.

Identified Threats and Vulnerabilities

Trugard Labs' Xcalibur suite has pinpointed several critical vulnerabilities that scammers are actively exploiting. These include:

• Hidden Mint (Controlled Mint): Manipulative contracts that allow unauthorized token minting, inflating supply and devaluing assets. This was prevalent on BSC, Base, and Ethereum.
• Hidden Balance Update: Scammers can make unauthorized balance adjustments, exposing token holdings to hidden manipulation. BSC and Base chains were significantly affected.
• Malicious Boolean Checks: A smart contract flaw enabling scammers to halt token transfers or approvals, posing a significant risk to token holders, particularly on Ethereum.
• Digital Signature/Import Tampering: Allows control over unapproved token burns, with BASE showing high susceptibility.
• Malicious Burn Functions: Unchecked token destruction, frequently observed on Ethereum.

The Rise of Political Meme Coin Scams

Recent months have seen a surge in politically themed meme coins, such as "Trump Vs Harris" and "Trump2024." These tokens exploit political sentiment, aiming for quick profits for creators while leaving investors with worthless assets. Tokens like "Trump Vs Harris" on BASE were flagged for hidden minting and malicious checks, while "DarkMaga" and "Trump2024" on Ethereum exhibited uninitialized variables, hidden balance updates, and reentrancy exploits.

Broader Scam Trends

Beyond BASE, rug pulls and exit scams are generally on the rise. Reports indicate that many new scams involve honeypot tokens with faulty transfer functions, allowing developers to steal user funds. Scammers are also creating fake versions of popular tokens, making it crucial for users to verify contract addresses through official project channels. The DEXX memecoin platform was recently exploited for $21 million, highlighting the ongoing risks in the decentralized finance space.

Sources

• Scammers Target BASE and Ethereum with Political Meme Coins and Rug Pulls, Hackread.
• DMM Bitcoin exchange liquidates, and rug pulls are on the rise: Crypto-Sec, Cointelegraph.