LayerZero

zkSync

Gemstone

An unknown individual generated 21,877 Sybil wallets, a token and even launched a DEX just to fake on-chain activity. 
An individual has made a whole ecosystem with its own token, wallets, and even launched a decentralized exchange (<a href="https://crypto.news/tag/dex/" data-type="link" data-id="https://crypto.news/tag/dex/">DEX</a>) just to fake on-chain activity. 
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 🚨Warning: 21877 sybil wallets by one person <a href="https://twitter.com/hashtag/zkSync?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">#zkSync</a> Let's disclosure this individuals sybil tactics, he funded all of his wallets with very small amounts of ether, then he deployed Gemstone ( <a href="https://twitter.com/search?q=%24GEM&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">$GEM</a> ) token that wasn't open source. (<a href="https://t.co/UXS2O2fivg" target="_blank">https://t.co/UXS2O2fivg</a>) ++ <a href="https://t.co/firJbfcdfL" target="_blank">pic.twitter.com/firJbfcdfL</a>— Lingland 09. ∎ (@lingland09) <a href="https://twitter.com/lingland09/status/1700970363713167450?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">September 10, 2023</a>
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 You might also like: <a href="https://crypto.news/fake-layerzero-airdrop-drains-victims-wallets/"> Fake LayerZero airdrop drains victims’ wallets </a> 
According to a DeFi analyst <a href="https://twitter.com/lingland09/status/1700970363713167450?s=20" data-type="link" data-id="https://twitter.com/lingland09/status/1700970363713167450?s=20" target="_blank" rel="noreferrer noopener">@lingland09</a>, the individual funded 21,877 Sybil wallets with very small amounts of ether (<a href="https://crypto.news/price/ethereum/" data-type="link" data-id="https://crypto.news/price/ethereum/">ETH</a>) and then deployed a smart contract for a token dubbed gemstone (GEM). Later, the coder developed a personal non-open sourced DEX “just for indirectly applying transactions between his wallets,” @lingland09 explained. 
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 Fake on-chain activity with GEM tokens done by the coder through a personal DEX | Source: X 
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Once the exchange was up and running, the individual added liquidity to GEM tokens with 80 ETH to make the artificial token valuable. 
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 “Then he swapped $gem tokens that he claimed from 21877 wallets at gem/eth pair and gained 0.6-0.7 eth value of profit.” 
 @lingland09 
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To automate the whole process, the coder made a trading bot, generating ten transactions with $10,000 in volume on zkSync Era network. Although the reason behind the activity remains unclear, @lingland09 suggests the coder is a “professional airdrop hunter” who might be faking activity on the zkSync Era network to prepare for a possible airdrop. 
In March 2023, crypto.news <a href="https://crypto.news/arbitrum-airdrop-marred-by-sybil-attacks/" target="_blank" rel="noreferrer noopener">reported</a> that Arbitrum’s airdrop for its governance token, ARB, faced significant Sybil activity, exacerbated by what experts call “ineffective” detection rules. A crypto security researcher, X-explore, found that Arbitrum’s Sybil detection rules had flaws, exploited by almost 280,000 same-person and over 148,000 Sybil airdrop addresses. 
 Read more: <a href="https://crypto.news/scammers-hijack-aptos-network-twitter-to-promote-fake-apt-airdrop/"> Scammers hijack Aptos Network Twitter to promote fake APT airdrop&nbsp; </a>

Airdrop hunter made over 21k Sybil wallets to fake on-chain activity

crypto.news

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