The crypto world is witnessing a new scam trick targeting AI trading bots – automated trading tools that help traders seize opportunities as soon as new tokens launch. According to blockchain security company CertiK, scammers are exploiting the permissionless trading mechanism of crypto to deceive bots and execute quick rug pulls.
From LIBRA to AI Bots: A New Scam Scenario
After the controversy of the LIBRA meme coin, where 'insiders' had prior information about the listing mechanism, scammers have shifted to target AI #TradingBots instead of regular traders.
Kang Li, Security Director at CertiK, shared at the Consensus event in Hong Kong that some new smart contracts are designed with sophisticated 'backdoors' to exploit AI bots themselves. These bots typically monitor the blockchain to detect new tokens and trade as soon as liquidity appears.
Initially, these counterfeit tokens look very 'clean', with no clear signs of fraud, leading AI bots to believe they are safe. But as soon as the bot makes a purchase, the scammers quickly 'rug pull' (withdraw all liquidity), trapping the bot.
New 'Bait' Tactic
#scammer is using a bait-and-switch strategy by:
✅ Designing tokens that appear safe for AI bots.
✅ Promoting aggressively in AI trading communities.
✅ Once enough purchases are made, quickly withdraw funds and disappear.
Li emphasizes that this is a serious issue on a large scale, causing damages of up to tens of millions of dollars. Notably, because the victims are mainly bots rather than individual users, regulatory agencies are less concerned, allowing scammers to continue to 'kill' bots without fear of prosecution.
Is There a Way to Prevent This?
Some technical solutions like anti-sniping have been proposed to help identify unusual transactions to limit bot manipulation of the market. However, many projects avoid applying these solutions as they may affect liquidity and user experience.
Charlie Hu, founder of BitLayer, said that #SmartContract without strict controls will inadvertently facilitate scammers' activities. 'If you make it completely permissionless, scammers will easily take advantage,' he said.
Warning for Traders
Scams in crypto are becoming increasingly sophisticated, and now even AI trading bots have become targets. Traders need to be cautious when using automated trading bots, as AI does not always recognize risks. At the same time, projects need to have stricter security solutions to prevent this situation from continuing.
➡ Lesson learned: No matter how smart AI is, when trading in a risky environment like crypto, traders still need to closely monitor and should not rely entirely on bots! 🚨
