Check Point Research (CPR) is flagging the popular Dingo Token, currently ranked #774 by market capitalization at $10,941,525 USD, as a live scam.
The threat actors behind the token embedded a backdoor function into the smart contract to manipulate the fee to an alarming 99%. Specifically, the threat actors used the “setTaxFeePercent” function within the token’s smart contract code to manipulate the buying and selling fees to an alarming 99%. The function has been used 47 times at this moment.
Investors of Dingo Token are at risk of potentially losing all their money. CPR warns of the growing interest in cryptocurrency scams by hackers for the ability to make large sums of fast money, while retaining anonymity.
Head of Products Vulnerabilities Research at Check Point Software, Oded Vanunu, has shared a stark warning to investors. “The Dingo Token is a clear scam. We found a backdoor code added to the token smart contract that allows the owner to change the fee charge. They changed it to a staggering 99% fee. This is a common tactic that locks users’ funds and eventually the scammers pull out all the money.”
“Scammers are increasingly finding cryptocurrency attractive. They can stay anonymous. It’s fast. It’s lucrative. If you’ve incorporated crypto into your investment portfolio or are interested in investing in crypto in the future, you should use credible exchanges and buy from an established token with numerous transactions behind it.”
CPR shares screenshots of smart contract code, proving a 95% taxFee + 4% LiquidityFee, equating to a 99% aggregate fee.
The smart contract here uses a 95% taxFee + 4% LiquidityFee , which equates to a 99% fee of any transaction, to contract steals your funds.