Scammers Target Solana Users With New Token Burn Scam

A new scam is targeting Solana users, swiftly wiping out their crypto assets moments after purchase. The latest scheme uses a token extension feature to burn tokens within seconds, leaving victims confused and shocked as their funds disappear.

According to Slorg, a member of Solana-based Jupiter’s Core Working Group, scammers have discovered a way to exploit Solana’s in-built token extension feature. This extension, intended for enforcing sanctions or similar measures, allows bad actors to burn tokens almost immediately after they are purchased. The scam came to light after a community member fell victim just days ago.

Scammers Target Solana Wallet To Wipe Out Cryptos

Slorg took to X (formerly Twitter) to explain the process in a thread. “Imagine you swap for a token, and your wallet confirms the transaction. But when you check inside, nothing shows up,” Slorg wrote. “You might assume it’s just a slow network, but the tokens never arrive. That’s what happened to a Jupiter Community member.“

After looking into the matter, the moderation team at Solana found that a burn transaction happened only seven seconds after the user received their tokens.

A token addition called “Permanent Delegate” gave an address the ability to burn tokens whenever it pleased, which made this possible. Although this function has valid uses, such as implementing fines, scammers are currently using it to quietly empty users’ wallets.

How To Avoid the Scams?

RugCheck and Jupiter Exchange are two of the organisations that are aware of this problem. They have created instruments to identify the state in which a token’s Permanent Delegate extension is operational.

RugCheck, a program designed to assist users in identifying possible token scams during a bad market, has shown to be effective in spotting schemes like this.

It was created because it was seen that a lot of users were being duped by token rug pulls. RugCheck guarantees users have the information they need to make knowledgeable decisions on tokens and protects against fraud with Solana’s new Token22 standard rollout.

The fraud emphasises how crucial it is to do your research. If users aren’t cautious, even valid token extensions like the Permanent Delegate can be abused. Slorg recommended that users carefully review all related material and confirm the specifics of any token swap.

Slorg stressed that “doing due diligence with any token is crucial.” “Always have a routine that you don’t deviate from, and take your time to read all the text when making a swap.”

This new attack vector highlights how cryptocurrency frauds are always changing, particularly as new token capabilities are introduced. Experts say that awareness and education are the strongest defences.