Scammers have devised a new method to quietly delete cryptocurrency assets using a Solana token extension. Slorg, a member of Jupiter’s Core Working Group on Solana, unveiled this tactic on September 3, highlighting that transactions were being executed within users’ wallets without any visible trace. This revelation has raised concerns within the crypto community about the security of Solana’s token management features.
New Attack Method on Solana Network
In this elaborate scheme, hackers swapped crypto assets for a token named RED using the Permanent Delegate extension. This maneuver enabled them to burn all tokens just seven seconds post-transaction. The Permanent Delegate extension, described on Solana’s official site, permits unrestricted burning or transfer of tokens, initially aimed at retrieving mistakenly transferred tokens or adhering to sanctions. However, even Solana acknowledges its potential for misuse, a notion underscored by Slorg.
Slorg noted that one motive for scammers is to create widespread chaos. By burning tokens, they prevent affected users from selling, thereby stabilizing prices. This enables scammers to capitalize on the initial token supply, making small but consistent profits. Slorg mentioned a previous case where a scammer issued multiple tokens, each time earning $50-$100, accumulating thousands of dollars weekly.
Industry Reactions to the Scam
Comments from blockchain security firms Beosin and Peckshield corroborated Slorg’s findings. PeckShield speculated that scammers are aiming to manipulate token economies by affecting the supply. Beosin suggested that the destruction of tokens might mislead users about the actual circulating supply, potentially inflating token prices for fraudulent gains.
Practical Precautions for Users
– Always scrutinize token transactions thoroughly.
– Maintain a consistent routine when swapping tokens.
– Pay close attention to all transaction details to avoid costly errors.
Slorg emphasized the need for vigilance, advising users to perform due diligence with any token transactions. Tools like Jupiter and RugCheck offer indicators aimed at identifying when such extensions are activated, providing an added layer of security.
In conclusion, while the Permanent Delegate extension offers useful applications, its potential for abuse highlights the need for robust security measures and user awareness to prevent financial losses in the crypto space.
