The deployer account for LSC drained over $1 million in tokens from the project, then swapped them to BUSD using PancakeSwap.
The astrology-themed NFT project Lucky Star Currency (LSC) has performed an exit scam for over $1 million, according to an October 9 report from blockchain security firm Certik.
The project’s deployer account called the ‘withdrawToken’ function on both the NFTMerge and AdwardCenter contracts, removing over $1 million in LSC from them. These tokens were then swapped for Binance USD (BUSD) stablecoin and sent to another account.
Lucky Star Currency is a project that focuses on NFTs and claims to be founded by astrologists. Its contracts include an Award Center and NFT Marketplace. It is marketed towards the Chinese crypto investment market. The team promotes the project on X (formerly Twitter) under the username @AstrAstrol75591. It also has a Telegram channel. As of October 9, the project’s website and user interface are offline.
Before the alleged rug, Lucky Star Currency was heavily promoted on the Chinese news app Toutiao and Q&A platform Zhihu.
According to Certik, the contracts that were drained have been listed on Telegram as the project’s official contracts.
In addition, blockchain data shows that the attacking account is the deployer for the AwardCenter contract.
The company that promoted the project claimed to have an office in Shenzen City, China.
Rug-pulls from Chinese projects have become a recurring problem in the Web3 space. Running a centralized cryptocurrency exchange is illegal in the country. Because of this, users who deposit to a Chinese protocol that has centralized elements may risk having their funds confiscated by police.
Over $100 million were lost in July when the China-based Multichain protocol drained all of its users’ funds into an attacker’s account. The team alleges that police have arrested their CEO, but victims still search for answers as to what happened to their funds and how they can be reimbursed.