Unveiling Rug Pull Schemes: A Closer Look at the “OpenAI” $NEA Token

In the ever-evolving realm of decentralized finance (DeFi), occurrences akin to the recent rug pull associated with the “OpenAI” $NEA token have regrettably become a common concern. Remarkably, since January 1, 2024, more than 28,000 tokens have been deployed exclusively on the Binance Smart Chain (BSC). This equates to an overwhelming influx of over 1,500 new tokens daily, presenting a formidable challenge for real-time audits.

Perpetrators often adopt the guise of well-known companies to build trust, using savvy marketing on social media platforms, Discords, or Telegram groups to attract unsuspecting investors. This blog post delves into our investigation into the $NEA fraud scheme, shedding light on the intricate deception and financial manipulation involved.

($NEA token price chart)

Incident Overview

Our investigation began by focusing on a specific wallet address responsible for deploying the smart contract (0xAcF8E368F2d72303cAa337a0cAbECa405a8604Aa) on the Binance Smart Chain (BSC). After this wallet created the token named “OpenAI” $NEA, which went from $380 to effectively $0 within a span of 15 minutes after the creator of this token drained liquidity from this pair on PancakeSwap. As of the time of writing this report, there are still 115 addresses holding this token, despite its worthlessness and inability to be sold.

Scope of Investigation

Our analysis reveals a correlation between the identified wallet address and other addresses engaged in similar suspicious activities. By conducting a thorough blockchain analysis, our aim is to illuminate the financial flows and connections associated with this scheme. This will enable us to link multiple wallet addresses and transactions to centralized exchanges, ultimately aiding in the identification of the perpetrators behind this malicious scheme.

In addition to creating the “OpenAI NEA” token, this address was linked to the creation of several other tokens, presumably for similar malicious purposes. Examples include:

• OpenAI KEGA: Token Link
• BWL Coin: Token Link
• Kenex Finance: Token Link
• Onexis Tech: Token Link

It's important to note that these "OpenAI" tokens most likely have no affiliation with the renowned OpenAI company.

Our investigation uncovered other wallets exhibiting similar behavior connected to this address, indicating a potentially extensive network.

Blockchain Analysis

Employing tools such as CoinPath MoneyFlow, our blockchain analysis revealed correlations between the identified wallet address and others involved in comparable suspicious activities. Meticulously tracing on-chain behavior, we unveiled a complex network of transactions and connections. Notably, funds flowed from the origin address, showcasing similar behavior and strategies aimed at maintaining anonymity on-chain.

Centralized Exchanges Link:

A pivotal moment in our investigation occurred when we successfully traced the proceeds from these suspicious incidents directly to centralized exchanges. Over the past months, funds underwent a convoluted journey through various wallets before ultimately landing in Binance and Bybit exchanges.

Recommendations

Victims are strongly urged to report such incidents to law enforcement. Our blockchain analytics reports, coupled with supporting off-chain evidence, can provide authorities with valuable insights for conducting a thorough investigation. Submit your crypto case here

Final Thoughts

Cryptocurrency fraud schemes pose a serious threat to the integrity of the crypto space. Our investigation into the $NEA rug pull incident exemplifies the power of blockchain analysis, emphasizing the need for vigilance within the community. By unraveling the complex web of suspicious activities, we aspire to contribute to a safer and more transparent crypto environment. Bitquery remains committed to leveraging our expertise for the benefit of victims and the broader crypto community. Should you have any questions or require further information, please don't hesitate to reach out.

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The information provided in this material is published solely for educational and informational purposes. It does not constitute a legal, financial audit, accounting, or investment advice. The article's content is based on the author's own research and, understanding and reasoning. The mention of specific companies, tokens, currencies, groups, or individuals does not imply any endorsement, affiliation, or association with them and is not intended to accuse any person of any crime, violation, or misdemeanor. The reader is strongly advised to conduct their own research and consult with qualified professionals before making any investment decisions. Bitquery shall not be liable for any losses or damages arising from the use of this material.