Following the launch of the Monad mainnet, malicious actors began executing fake ERC-20 token transfers. The situation was highlighted by blockchain co-founder James Hunsaker.
These transactions appear normal in the explorer, but in reality, no approval was signed, and no coins were moved. Hunsaker noted that some fake transfers were allegedly made from his wallet.
“The transactions are not sent by me. ERC-20 is just a token interface standard, and it’s easy to write a smart contract that complies with this standard, but it can have address entries that are not authorized by the owner,” he explained.
Hunsaker added that the malicious activity is not a flaw in the Monad blockchain but rather a “substitution within their smart contract to deceive people.” Thus, fraudsters attempt to confuse users of the new protocol by hiding behind well-known figures within the project. Some contracts generated fake swap calls and other artificial signatures to mimic real trading in the ecosystem. The scammers intensified their efforts as the network is undergoing an airdrop distribution. On November 24, the mainnet and MON token were launched. At the time of writing, the coin’s market capitalization exceeds $500 million with a daily trading volume of $1.32 billion. 15-minute MON/USDT chart on Bybit exchange. Source: TradingView.
