Seed Phrase Honeypot Scam Explained
This scam tricks people who think they’ve just
stumbled upon free money — but it ends with them getting robbed.
Here’s how it works:
You might see a public seed phrase shared in a Telegram group or on Twitter, accompanied by a screenshot showing a wallet with thousands of dollars in tokens. It looks like someone accidentally leaked their wallet backup. Tempted by the “easy money,” some users import the seed phrase into MetaMask or another wallet app.
At first, they see the tokens and try to send them to their own wallet — but the transaction fails because there’s no ETH to pay for gas fees. So, they send a little ETH to cover the fee.
That’s when the trap springs. A bot watches the wallet 24/7, and the moment ETH arrives, it uses that ETH to front-run the user and instantly drains the wallet.
Why does this happen? Because the scammer actually owns the wallet. The token balance is fake — sometimes created with fake contracts or fake liquidity pool tokens that look valuable but can’t be sold. It’s all bait designed to catch greedy users.
The bottom line: Never trust leaked seed phrases. If a wallet supposedly “leaked” with thousands of dollars still inside, ask yourself — why hasn’t the owner emptied it? The answer: it’s a trap, and you’re the target.
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