Altcoin News: One of the Largest Scams in Ethereum History

September 27, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

The most active contract on the Ethereum network, called FairWin, is believed to jeopardize the assets of its users and continues to consume a significant portion of the network’s resources.

Blockchain developer Philippe Castonguay writes: “The FairWin.me Ponzi Scheme contains critical vulnerabilities that put all funds at risk. Spread knowledge (especially in Asia).” “Users need to withdraw their funds and stop interacting with the contract ASAP. Details on the exploits will be published soon.”

Cybersecurity researcher Harry Denley has gathered information about FairWin addresses and possible exploits. The FairWin contract is a proposed HYIP scheme that contains a large amount of funds in ETH — currently at the contract $9 million is held.

Referring to the investigation of the Reddit user, Denley lists six addresses that constantly send transactions to the FairWin contract and consume about 50% of the network’s resources.

The author of the investigation indicates that FairWin mainly attracts investors in Chinese social networks and blogs and invite them to participate in a highly profitable scheme where users are invited to make a deposit of 1 to 15 ETH and receive an interest payment of 0.5–1% for five days.

The contract is decentralized, but only 70% of the proceeds go to paying commissions to old depositors. 30% always pick up! As soon as all money is withdrawn from the account, those who entered last will be punished with a complete loss of the deposit. Some of them make investments repeatedly. Currently, 40,000 ETH is on the contract, 12,000 ETH has already gone to an unknown scammer, u/RaynorAnimalTrainer pointed out, adding that FairWin may turn out to be one of the largest scam schemes in Ethereum history.

Author: Marko Vidrih