A closer look at the “Lucky Star Rug Pull”, a $1M Cryptocurrency Heist
Singapore, October 11th 2023 — Navigating through the vast Decentralized Finance (DeFi) and Non-Fungible Token (NFT) space requires sharp awareness and a skeptical eye. An example that underscores this imperative is the recent “Lucky Star Rug Pull” incident that took place on the Binance Smart Chain (BSC) Mainnet. This event, reported by news sources like Cointelegraph or projects like CertiKAlert, entails the unauthorized withdrawal of LSC tokens, subsequently exchanged for BUSD and accumulated at a single address, costing the stakeholders an estimated $1 Million.
Our in-house research team at Uppsala Security assessed the case to uncover any noteworthy findings.
Incident Breakdown
The strategy employed by the malicious actor(s) appears rather straightforward yet carefully executed. LSC tokens were illicitly withdrawn, converted to BUSD, and ultimately consolidated into a single address (0x23f8c805306Bf27AB8bf3cEbEce4B778acfFd896).
In a brief, here’s how the event unfolded:
- Withdrawal of LSC tokens from the system
- Swap of LSC tokens to BUSD
- Consolidation of BUSD at a single address
The wallet addresses involved in this operation, swapping LSC tokens to BUSD and funneling them into the consolidation address, are as follows:
- 0x9Ef72Ee68a7c841986A0C60e0FDbAE4e27446Deb
- 0x895c414F17Ef676dd9c18D55D3358D411ba79574
- 0xFA24FcAff5A51965F762101c2BD4E46302a2Bd64
- 0x8789DA3886386740DD775C95E18820BEe339a48A
Examining the consolidation address reveals an interesting aspect: it harbors a history of other incoming funds prior to this incident. Could it be a mere coincidence or an intentional confusion tactic? Or does this address serve as a confluence point for funds derived from other criminal activities?
The intersection between multiple streams of incoming funds, presumably from various illicit endeavors, suggests a plausible continuity among them. This intriguing convergence propels an inquiry: is there a common threat actor masterminding multiple cyber-attacks?
While our team will continue to monitor the case’s activity closely, you can explore the incident’s details further by visiting the Sentinel Portal or the CAMS (Crypto Asset Monitoring Service) Dashboard, respectively.
CAMS, short for Crypto Asset Monitoring Service, is a cutting-edge real-time monitoring product that offers an advanced capability to oversee cases involving digital assets. One of its standout features is its automated fund monitoring functionality, which significantly reduces the reliance on manual oversight. With CAMS, the system continuously tracks financial transactions, instantly detecting any movement of funds and promptly notifying relevant stakeholders. This not only enhances efficiency but also ensures timely responses to potential security and compliance concerns, making it an indispensable tool in the realm of digital asset management.
The Lucky Star incident serves as a grim reminder for stakeholders, developers, and investigators within the cryptocurrency ecosystem to forge ahead with elevated diligence and skepticism. Deploying advanced security protocols, conducting rigorous smart contract audits, and fostering a culture of security awareness among users are paramount.
About Uppsala Security
Uppsala Security is a leading provider of innovative security tools and services, specializing in Crypto Anti-Money Laundering/Counter-Terrorist Financing (AML/CTF), Transaction Risk Management, Regulatory Compliance, and Transaction Tracking. With a team of experts dedicated to staying ahead of emerging threats, Uppsala Security empowers organizations with the knowledge and tools to safeguard their operations in the fast-paced world of cryptocurrencies.
Disclaimer: This article is meant for informational purposes and does not constitute financial or legal advice. Always conduct your own research and consult professionals directly.
