Late Wednesday, Internet whistleblower and YouTuber Coffeezilla released a new video documenting how he, along with members of the blockchain community, stopped an alleged $20 million non-fungible or NFT scam before it could be carried out. As reported by Coffeezilla, there has been a lot of hype by users about a new crypto project called “Squiggles” whose NFT crash is scheduled for February 10th. At the time, Squiggles had over 230,000 followers on Twitter.
Hours before the expected crash, an anonymous user posted a 60-page report claiming that the founders of Squiggle were paid puppets. At the same time, the real people behind the project must belong to a group of NFT hacker scammers operating under the collective name “NFT Factory LA”. Citing the documents, Covizela says:
“It carefully documents the allegations of NFT Factory LA, made up of ‘Gavin, Gabe and Ali’ behind not only the Squiggles, but various NFT scams. Souls, Dirty Dogs, Happy Buddhas, etc.”
The series of alleged scams did not go unnoticed; But crypto enthusiasts soon punished Gavin, Gabi, and Ali for organizing the alleged “rye” activities. As a result, they had to hire “dolls” to work on future projects like Squiggles. But on the eve of the night, the NFT project lost $20 million, photos allegedly showing Squiggles founder Arslan and Gavin together in the same Rolls-Royce circulated on Instagram.
“Essentially, these guys are producing NFT designs that look solid and are of high quality. And then, after launch, it turns out it’s just cash.”
They later showed up at the same club with a “Squiggles Boys” sign, and then there was a picture of Gavin, Gabby, and Ali in the same picture in the same spot. “People got two and two together really quickly,” Kofezilla says. A few hours after launch, OpenSea deleted the project.
It appears that the alleged scammers have also tried to manipulate the sales volume of NFT. As Coffeezilla showed:
“[Through EtherScan] one account spent 800 ETH ($2.384 million), which is over $2 million spread over two transactions that led to the creation of hundreds of new wallets. These shadowed wallets then bought three NFT Squiggles and immediately listed them on OpenSea at a lower price.” cash. ”
“We don’t know if it resulted in a profit or a loss, in both cases they were prevented from earning the $20 million they could have made and that’s fine,” the YouTuber explained. Coffeezilla is known in the blockchain community for exposing alleged scammers and warning members about rye smoke. Earlier this month, he published an interview with the disgraced YouTuber Ice Poseidon, who publicly refused to return investors’ funds after a supposedly $750,000 decentralized funding cap.