Blockchain security analysts are warning crypto exchanges to be vigilant as malicious actors are increasing their efforts to flood them with fake tokens on the TON network. These bad actors are exploiting fake USDT transactions on the Open Network (TON) as Tether continues to expand its stablecoin support on the network. Data from blockchain security group Dilation Effect shows that malicious actors are bombarding crypto exchanges with fake USDT transactions in large quantities.
According to on-chain activity reviewed by crypto.news, at least one bad actor has been targeting multiple exchanges, including Binance, Bybit, MEXC, and Gate.io, with fraudulent tokens on TON. The hacker deployed a fake smart contract for USDT on TON, designed to mimic the metadata of the official smart contract. While fake deposits are not a common occurrence in the industry, blockchain analysts had previously warned about this type of attack.
The process of deposits on exchanges involves various stages where false top-up attacks can take place. SlowMist, a blockchain firm, highlighted the unique characteristics of TON transactions, noting that almost all internal messages sent between smart contracts should be “bounceable.” This means that if the target smart contract doesn’t exist or encounters an unhandled exception, the message will bounce back to the original account. While there are no indications that the recent activity has resulted in profit for bad actors, there have been instances where scammers succeeded in attacking trading platforms with fake tokens.
In one such incident, hackers exploited a contract upgrade for the GALA token to trick the deposit system of a Mongolian crypto exchange, successfully withdrawing all GALA from the exchange. The TON Foundation has also allocated 11 million Toncoin to reward USDT users, indicating a growing concern about security and fraudulent activities in the crypto space. It is crucial for crypto exchanges to strengthen their security measures and scrutinize deposits closely to prevent malicious actors from exploiting vulnerabilities in their systems.
As the crypto industry continues to evolve, the importance of blockchain security and maintaining the integrity of exchanges becomes increasingly significant. With the rise of fake token deposits and fraudulent activities on the TON network, it is essential for exchanges to stay vigilant and implement robust security measures to protect their users and assets from malicious actors. By staying informed and proactive in addressing potential threats, crypto exchanges can ensure a safer and more secure trading environment for all stakeholders involved.
