Tsuzuki Team Scammed and Stole all the Liquidity of Investors

Key Takeaways:

  • Tsuzuki Inu allegedly “carpeted” all of the liquidity of investors.
  • Transaction history Etherscan shows that they swapped ERC-20 tokens for 265 packaged Ethereum and then converted them into USDC worth over $ 1,157,125.
Tsuzuki Team Scam
Tsuzuki Team Scam

This morning, Twitter users discovered that developer Tsuzuki Inu allegedly “carpeted” all of the liquidity of investors. Transaction history Etherscan shows that they swapped ERC-20 tokens for 265 packaged Ethereum and then converted them into USDC worth over $ 1,157,125.

TZKI’s value on CoinMarketCap has fallen nearly 97% and is trading at $ 0.0000000000002 at press time after this incident. This token has been in use since March of this year and can be used as a meme coin or a game token. They also intend to add play-to-earn features in the future, as well as a DEX wallet that recently implemented free giveaways, in order to raise the tokens’ validity and price. With blocked liquidity, TZKI has a total supply of 1 trillion.

As screenshots from Telegram chats on Twitter show, the developers enticed investors to send their TZKI tokens to the swap contract account in order to exchange them for TZKI v2 tokens. The protocol’s Twitter account has been disabled since then, and the Telegram channel has stopped responding.

Abandoned investors are actively searching for information or mourning on Twitter, while others try to track down those who are to blame. KOL Jared, believed to be the face of the protocol, has received death threats since then. Brother speak that he was not a member of the admin team and instead fell victim to fraud.

https://twitter.com/ShadowedEmbrac3/status/1462489044911337473?s=20

Some investors have also questioned whether legitimate exchanges, such as BitMart, would list such a token and, if so, whether they would be forced to return missing investments. However, it turned out that BitMart had stopped all deposits and withdrawals from TZKI at the request of the project team.

Scams involving tokens that appear to be innocent candidates are becoming increasingly popular at a time when tokens like SHIB are growing like wildfire and play-to-earn games like Axie Infinity are on the rise. The Tsuzuki Inu con is similar to the Squid Game token carpet drawing that occurred recently. The digital token, which was based on the hit Netflix series of the same name, crashed a few days after its value soared thousands of percent and developers fled with $ 3.38 million.

This latest scam came just days after India’s Prime Minister Narendra Modi warned about the dangers of the cryptocurrency falling into the wrong hands. Prime Minister Modi downplayed the importance of democracy in ensuring that cryptocurrencies do not ruin young people in the hands of bad actors in his speech at the Sydney Dialogue. The Prime Minister recently presided over a high-level meeting to discuss Bitcoin-related issues and express concerns about India’s unregulated cryptocurrency market.

Nikita Perry is a young 37-year-old male who is one of the people who got scammed in this has raised a fund. He said that he lost the entire life savings that he invested in that project and in the blink of an eye they pulled the rug on us and everyone who invested lost everything. 

Chaahat Girdhar
Chaahat Girdhar

I'm Chaahat Girdhar, a journalist by profession who's turning her dreams into vision and vision into reality. I'm curious and have an appetite for gaining new knowledge. So I'm looking forward to learning things in the better way possible.

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