Blockchain community successfully stops $20 million NFT scam

On Wednesday (February 16), YouTuber and internet sleuth Coffeezilla publish A new video shows him alongside members of the blockchain community fending off a $20 million NFT scam before it materialized.

According to Coffeezilla, there was previously a lot of hype around a new crypto project called “Squiggles” that NFT was set to drop on February 10, as Squiggles attracted more than 230,000 followers on Twitter at the time.

Hours before the drop, an anonymous user published a 60-page report accusing Squiggles’ founders of being paid puppets. At the same time, the real people behind the project are said to belong to a group of NFT mass scammers operating under the name “NFT Factory LA”.

“It meticulously documents allegations that NFT Factory LA, including ‘Gavin, Gabe and Ali’, is not only behind Squiggles but also behind several other NFT scams including League of Sacred Devils, League of Divine Beings, Vault of Gyms, Sinful Souls, Dirty Dogs, Lucky Buddhas and many more”.

The series of alleged scams went unnoticed. However, it wasn’t long before Gavin, Gabe, and Ali were all being plagued by angry crypto enthusiasts for staging carpet moves. Therefore, they need to hire “heads” to do the work of future projects like Squiggles. But before the NFT project dropped $20 million, photos purportedly showing Squiggles founders Arsalan and Gavin riding in the same Rolls Royce went viral on Instagram.

“Basically these guys are making NFT projects that look trustworthy and high quality. And then, after takeoff, it turns out they’re just cashing in.”

Hours after launch, OpenSea deleted the project.

“Fun fact not in the video: Gavin, Gabe and Ali are also behind MOONPORTAL, a carpet puller that I didn’t even mention. They made $65,000, here’s the proof.”

It appears that the alleged scammers also tried to manipulate the NFT sales volume.

“Through EtherScan, one account spent 800 ETH ($2.384 million) on two transactions that created hundreds of new wallets. These shadow wallets then bought 3 NFTs from Squiggles and immediately listed them on OpenSea for less money. We don’t know if that resulted in a win or loss, in a way they were prevented from making the $20 million they could have made and that’s a good thing.”

Coffeezilla is known in the blockchain community for exposing scammers and warning members about carpet pulling.

Earlier this month, he published an interview with Youtuber Ice Poseidon, who publicly refused to return investors’ funds after pulling $750,000 on a decentralized finance platform.

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