ZachXBT identified a connection between a new Web3 project and the organizers of past NFT scams. The individuals are linked to the Squiggles and Raichu projects, which were exposed in a series of rug pulls. The warning came after the announcement of an airdrop that required users to send SOL in order to participate and receive the project’s tokens in return.
ZachXBT noted that the project is backed by a person associated with other rugpulls, including Raichu and the notorious Squiggles NFT drop. He reminded his audience that he had previously tracked the actions of these individuals in several questionable crypto projects.
Old Scheme Under a New Cover
The “deposit for airdrop” mechanic gained wide recognition in 2024 after the launch of the Book of Meme (BOME) project. At that time, users sent funds to a pre-specified address in hopes of receiving the project’s tokens. Despite BOME’s success, this model was later widely adopted by scammers, who either never delivered the promised tokens or issued worthless assets instead.
This mechanic creates the appearance of legitimacy but is often used as a convenient way to siphon funds under the guise of an airdrop.
The History of the Squiggles Project
One of the projects mentioned in the investigation is Squiggles, which was exposed in February 2022. YouTube journalist Coffeezilla published an investigation based on on-chain data and internal documents. He reported that the project was preparing for a massive launch, with more than 230,000 followers on X and an expected raise of around $20 million from NFT sales.
However, just hours before the launch, a 60-page presentation was released, claiming that the visible founders of Squiggles were front figures.
The real organizers were allegedly a group called NFT Factory LA, which had previously launched projects such as League of Sacred Devils, Vault of Gems, Dirty Dogs, and others.
Analysts found that Squiggles used dozens of shadow wallets to artificially inflate trading volumes. A single account created hundreds of new wallets, bought NFTs, and resold them to itself at discounted prices, creating the illusion of activity.
The scheme was linked to three individuals (Gavin, Gabe, and Ali), whose names had appeared in numerous other questionable NFT drops. According to ZachXBT, these same figures are connected to the current events surrounding the new Web3 project.
Read Also:
- ZachXBT Criticizes Exchanges and Web3 Projects for Enabling Thefts
- Canadian Sentenced to One Year in Prison for Stealing NFTs Through Hacked X Accounts
- User Loses $1.23 Million After Signing Malicious NFT Transaction
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