Astrology NFT Project ‘Lucky Star Currency’ Accused of $1 Million Exit Scam: CertiK Report

In the volatile world of cryptocurrency and NFTs, trust is paramount. Unfortunately, the promise of astronomical gains can sometimes lead to earthly disappointments, or worse, outright scams. The latest project to allegedly leave investors seeing red is Lucky Star Currency (LSC), an astrology-themed Non-Fungible Token (NFT) project. Blockchain security firm CertiK has reported that LSC has executed an exit scam, making off with over $1 million in investor funds.

What Happened with Lucky Star Currency? The CertiK Report

According to CertiK’s report released on October 9th, the project’s deployer account made some suspicious moves. Let’s break down what CertiK uncovered:

• Function Calls: The deployer account initiated the “withdrawToken” function on two key smart contracts: NFTMerge and AdwardCenter.
• Fund Drain: This action resulted in the removal of over $1 million worth of LSC tokens from these contracts.
• Swift Swap: The stolen LSC tokens were then rapidly exchanged for Binance USD (BUSD), a stablecoin pegged to the US dollar.
• Destination Account: These BUSD funds were subsequently transferred to a different, external account.

In essence, CertiK’s findings paint a clear picture of a classic ‘rug pull’ – a scam where project developers abruptly abandon a project and abscond with investors’ funds.

Lucky Star Currency: Promising Stars, Delivering Dust?

Lucky Star Currency positioned itself as an innovative project at the intersection of astrology and NFTs. Here’s what we know about their initial promises:

• Astrology Theme: The project heavily leaned into astrology, claiming to be founded by astrologists. This theme likely aimed to attract users interested in both crypto and celestial guidance.
• NFT Focus: NFTs were central to the project, with mentions of an NFT Marketplace and NFTMerge contracts.
• Target Market: LSC specifically targeted the Chinese crypto investment market, a significant demographic in the crypto space.
• Social Media Presence: The team actively promoted the project on X (formerly Twitter) under the username @AstrAstrol75591 and maintained a Telegram channel to engage with their community.

However, the current situation paints a starkly different picture. As of October 9th, the project’s website and user interface have vanished, leaving investors in the dark.

Marketing Blitz and Red Flags: Hindsight is 20/20

Before the alleged rug pull, Lucky Star Currency engaged in significant marketing efforts, particularly within China. They heavily promoted the project on popular Chinese platforms such as:

• Toutiao: A widely used Chinese news and information app.
• Zhihu: A Chinese question-and-answer platform, similar to Quora.

This aggressive promotion might have contributed to attracting a large number of investors. Looking back, the sudden disappearance of the website and social media activity should serve as a stark warning sign for potential investors in any crypto project.

The Timeline of the Alleged Exit Scam: Transaction Details

Let’s delve into the specific transactions that triggered the alarm bells, according to blockchain data:

Around 02:52 a.m. UTC:

The BNB Smart Chain address 0x9Ef72Ee68a7c841986A0C60e0FDbAE4e27446Deb, identified as the deployer account, initiated the fund draining process.

Transaction 1: AwardCenter Contract Drain

In the first transaction, a massive 1.6 million LSC tokens were removed from the AwardCenter contract. You can see the transaction details here: BSCScan Transaction Link.

Transaction 2: NFTMerge Contract Drain

Shortly after, another 1.4 million LSC tokens were drained from the project’s NFTMerge contract. Transaction details are available here: BSCScan Transaction Link.

Token Swap and Fund Transfer

Following the token drain, the attacker swiftly swapped the ill-gotten LSC for over $1 million in BUSD via PancakeSwap, a decentralized exchange. The final destination for these funds was the account 0x23f8c805306Bf27AB8bf3cEbEce4B778acfFd896. BSCScan Transaction Link for Swap.

CertiK highlights that the drained contracts were indeed advertised as the official contracts for the Lucky Star Currency project within their Telegram group, as seen in the image below:

Further on-chain analysis by CertiK revealed that the very account responsible for initiating the attack (0x9Ef72Ee68a7c841986A0C60e0FDbAE4e27446Deb) was also the deployer of the AwardCenter contract. BSCScan Deployer Transaction Link.

Chinese Connection and Web3 Risks: A Recurring Pattern?

Adding another layer of intrigue, the company promoting Lucky Star Currency claimed to have an office in Shenzhen City, China, as shown in this image:

Unfortunately, rug pulls originating from projects with ties to China have become a concerning trend in the Web3 space. It’s crucial to remember that operating centralized cryptocurrency exchanges is illegal in China. This regulatory landscape introduces unique risks. Users engaging with Chinese protocols that exhibit centralized characteristics face the potential threat of fund confiscation by authorities.

The Lucky Star Currency incident echoes the massive $100 million loss experienced in July with the China-based Multichain protocol. In that case, users’ funds were completely drained. While the Multichain team alleges the arrest of their CEO, affected users are still desperately seeking answers and pathways to recover their lost assets. Learn more about the Multichain saga.

Lessons Learned: How to Spot Potential Rug Pulls?

While no system is foolproof, being aware of red flags can significantly reduce your risk in the crypto and NFT space. Here are a few key indicators to watch out for:

• Anonymous or Unverified Teams: Lack of transparency about the project team is a major red flag. Legitimate projects usually have publicly known and reputable teams.
• Unrealistic Promises: Be wary of projects promising exceptionally high returns with little to no risk. “If it sounds too good to be true, it probably is” holds true in crypto.
• Aggressive Marketing and Hype: While marketing is necessary, excessive hype and pressure to invest quickly can be manipulative tactics.
• Limited Utility or Vague Roadmap: Scrutinize the project’s utility and roadmap. Are they clearly defined and realistic, or are they vague and lacking substance?
• Sudden Website/Social Media Shutdown: As seen with Lucky Star Currency, a sudden disappearance of online presence is a critical warning sign.
• Smart Contract Audits: Check if the project’s smart contracts have been audited by reputable security firms like CertiK. Audits can identify potential vulnerabilities.

Conclusion: Navigating the Crypto Cosmos Safely

The alleged Lucky Star Currency rug pull serves as a sobering reminder of the risks inherent in the cryptocurrency and NFT markets. While the allure of astronomical gains is strong, exercising caution, conducting thorough due diligence, and being aware of red flags are essential for navigating this space safely. Always remember, in the crypto cosmos, not all stars are lucky, and some may just be black holes in disguise. Stay informed, stay vigilant, and invest wisely.