Cryptocurrency security experts are warning investors about a newly discovered memecoin scam that bypasses detection filters on major trading data platforms.
This new scam involves a token called REPUBLICAN that has a secret code that allows its founder to withdraw tokens directly from any wallet that holds them.
“What we’re seeing here is the increasing sophistication of scam tokens in evading detection techniques,” Michael Lewellen, Head of Solution Architecture at OpenZeppelin, said in a statement. While scam tokens have been a recurring problem for cryptocurrency investors, this new memecoin uses advanced coding techniques to bypass traditional security scans.
The REPUBLICAN token appears legitimate at first glance. However, hidden within its code lies a feature that allows the programmer to withdraw tokens from innocent users’ wallets and create an unlimited balance for themselves. Investors who exchanged ETH for REPUBLICAN on decentralized exchanges have reported that their tokens disappeared shortly after purchase.
The scam was first spotted by user X @yourfriend_btc and has since gained attention among crypto security circles. While the exact profits made by the scammer are unknown, Dex Screener data suggests that $408,000 worth of REPUBLICAN tokens were traded.
Lewellen explained that the scammer used assembly language, a low-level programming language closely aligned with machine code, to hide the malicious code inside the token. “Assembly language code is harder to interpret, which makes it harder to detect if it contains malicious features,” he said. This complexity allowed REPUBLICAN to bypass security checks that usually identify dangerous tokens.
Despite the growth of real-time monitoring tools in the industry, these tools have not flagged the REPUBLICAN token. Dex Screener, which performed three separate code audits on the token, found no issues but warned that such audits may not be foolproof.
*This is not investment advice.