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Robinhood Chain scams: users lose money on launch day

Robinhood Blockchain flooded with scams days after launch

  • Robinhood’s new blockchain mainnet launched July 1 and is already flooded with scams, including rug-pulls and wallet drainers
  • Users report losses ranging from $50 to $56,000 due to honeypot contracts, poisoned memecoins, and unauthorized token transfers
  • Memecoins account for more than 75% of trading activity on the nine-day-old chain, creating an environment researchers describe as ripe for fraud

Robinhood (Nasdaq:HOOD) launched the public mainnet of its new blockchain on July 1, and within days, users reported significant financial losses from rampant scams. Bad actors are deploying rug-pull memecoins, wallet drainers, and honeypot contracts across the network, according to warnings from Relay Protocol.

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The scam contracts accept token swaps and briefly credit buyers’ wallets before immediately transferring the tokens back to the deployer. Consequently, one trader alleged that Robinhood Wallet’s default sell screen auto-populated a scam coin called USER, costing $600 in seconds.

Another trader swapped ether for a poisoned memecoin named $ROBINHOOD inside their wallet, only to see tokens move to an unauthorized address instantly. Meanwhile, an NFT collector claimed that an OpenSea swap on Robinhood Chain sent $350 to an unauthorized wallet.

One researcher warned that the chain is “absolutely crawling with wallet drainers and fake token scams,” alleging a CASHCAT holder lost $56,000 to a hacked smart contract. Another trader tagged CEO Vlad Tenev after losing $50 to what he called scam transactions.

A separate user warned that ROGE on Robinhood Chain is a 100% honeypot with a backdoor in the contract. Researchers note that memecoins account for more than 75% of trading on the nine-day-old chain, a statistic that typically signals trouble for most speculative digital assets.

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Multiple users are calling for wallet providers to enable revoke-approvals to help undo compromised smart contract authorizations. Others urge traders to audit contracts before authorizing transactions on the permissionless network.

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