Scam Alert: Hackers Burn Tokens In Wallets, Here’s How to Avoid It

Within the Solana ecosystem, a new scam has emerged in which scammers burn tokens straight out of users’ wallets by abusing a functional token feature. A user’s wallet history indicates that the token exchange was successful, but this is where the problem starts.

A closer look reveals that the tokens are missing from the wallet, though. Users may initially believe that the network is just delayed, but it soon becomes apparent that a more significant issue has arisen.

It was found that a burn transaction had occurred in one recent instance merely seven seconds after the tokens were received. The tokens were purposefully burned in the subsequent transaction – not lost because of network congestion or other technical problems.

The permanent delegate token feature is the center of the scam. Tokens may be burned at any time by an authorized address thanks to this extension. Although scammers have discovered a way to take advantage of the feature, it is meant for legal uses like enforcing sanctions.

Without the owner’s knowledge or approval, the delegate has the authority to destroy tokens, essentially stealing the money. In an effort to address this problem, certain platforms have implemented warnings for tokens that have the permanent delegate feature enabled. Many users are put at risk since not all exchanges and wallets provide these safeguards.

Scammers can keep abusing the feature unnoticed because it is still functional even if the token is switched off. All users trading tokens on the Solana network should take note of this recent case. Users are advised to carefully check their transaction details and select platforms that are aware of and actively monitor this issue in order to avoid becoming victims of this kind of scam.

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