Scammers Potentially Use Shiba Inu Brand to Steal Users’ Funds on Tron

PeckShield has released an announcement regarding the Shiba Inu token on the Tron blockchain that appears to be a honeypot for Shiba Inu users who wanted to move their funds to another blockchain.

According to the blockchain security firm, the contract contains a piece of code that allows the selling of the token only for whitelisted users. Wallet addresses that received tokens but have not entered the whitelist will not be able to transfer funds.

#SCAM PeckShield has detected that @ShibaTronToken$SHIBT (https://t.co/PXu2lansGB) is #honeypot! Only whitelisted users can sell. Stay away from tokens that have a lot of restrictions on transferring or selling! pic.twitter.com/sRN3sXiz8x

— PeckShieldAlert (@PeckShieldAlert) February 28, 2022

PeckShield also recommended avoiding any tokens or coins that limit users’ ability to sell, transfer or make operations with their own funds. Quite often, developers open token sales, distribute tokens and then limit some wallets from selling digital assets on exchanges.

The only way to fix the issues and avoid a serious exploit is to fork the whole token, which is almost impossible to do in conditions of full decentralization of the community or a token with a relatively small capitalization and number of holders.

According to the bscscan page, the ShibaTron token has a $60 million capitalization and 5,500 holders, which could be considered a large project for a token with a significant exploit hidden in the code.

As the transactions page suggests, numerous users are still interacting with the contract and swapping their altcoins for the token despite all the warnings published on social media. Some users are also expressing hopes and note that developers left the rule in the code unintentionally and are not trying to scam their users.