Monday, 27 March 2023

Crypto News

Dingo crypto token flagged as scam over 99% transaction fee backdoor

Dingo crypto token flagged as scam over 99% transaction fee backdoor

The research arm of cybersecurity software firm Check Point has flagged the Dingo Token (DINGO) as a “potential scam” after reportedly discovering a smart contract function that has been used to manipulate transaction fees.

In a Feb. 3 blog post, Check Point Research (CPR) said it looked into the code behind the Dingo Smart Contract, discovering a backdoor function “setTaxFeePercent,” which can change the contract’s buy and sell fee up to 99%.

This is despite the project’s whitepaper stating that there is only a 10% fee per transaction.

An example of the smart contract function being used to manipulate transaction fees. Source: Check Point Research

According to CPR, this essentially allows the project’s owner to withdraw up to 99% of the transaction amount whenever a user buys or sells the token.

In one case the cyber security software firm observed a user who spent $26.89 to purchase 427 million Dingo Tokens but instead received 4.27 million, or $0.27 worth of Dingo Tokens.

An example of a user only receiving 1% of the transaction’s value. Source: Check Point Research

The firm said it decided to investigate the Dingo Token project after seeing the token rise 8,400% this year, and found at least 47 instances of the function being used to allegedly scam token investors.

“We all know that 2022 was a hard year in the crypto market. However, when we saw a token raised by 8400% this year, we had to investigate the project and understand what was unique about it. We examined the Dingo Smart Contract and quickly found it seemed like a scam,” it wrote.

Check Point Research (CPR) has found at least 47 instances of the smart contract function being used. Source: Check Point Research

The firm also pointed to the Dingo Tokens website, noting that it has “no real information about the owners of the projects,” other than a four-page whitepaper.

“If you’ve incorporated crypto into your investment portfolio or are interested in investing in crypto in the future, you should make sure to only use known exchanges and buy from a known token with several transactions behind it,” wrote the research firm.

As of writing, Dingo Token is ranked 298 on CoinMarketCap with a live market cap of $82,555,168.

Related: Sneaky fake Google Translate app installs crypto miner on 112,000 PCs

Cointelegraph reached out to the creators of Dingo Token for a response to the allegations but has yet to receive a reply before publication.

Users of Twitter and CoinMarketCap have also recently…

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