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Scammers have recently devised a new method to defraud Solana users by burning their tokens shortly after purchase. Reports indicate that users are seeing their newly acquired tokens disappear from their wallets within seconds of the transaction.
Slorg, a member of Solana-based Jupiter’s Core Working Group, shared details about this alarming trend in a Sept. 3 post on X. According to Slorg, users are swapping for tokens, only to find that their wallets show no trace of the transaction.
The scam involves a feature called “Permanent Delegate,” which is part of {Solana} (SOL) Token 2022 standard. This extension allows for unrestricted delegate privileges over all token accounts for a particular mint, enabling scammers to burn or transfer tokens without limitation. The feature is designed for legitimate purposes such as retrieving mistakenly transferred tokens or for automated payments. However, it also poses significant risks if misused.
One example involves a user who swapped for a token named “RED.” Shortly after the transaction, the tokens were burned by scammers using the Permanent Delegate feature, leaving the user with no assets.
Slorg suggests that the motivation behind these scams may vary. One reason could be to create chaos and confusion among users. Another could be to manipulate the token’s circulating supply, making it difficult for others to sell, thereby affecting the token’s price. This approach could be particularly profitable if scammers manage to reduce the float of the token and then capitalize on price movements.
Blockchain security firms like PeckShield and Beosin support these theories, noting that such scams can disrupt the tokenomics of a cryptocurrency. By burning tokens, scammers might be aiming to artificially inflate the value of a token or to deceive users into believing that the circulating supply remains unchanged.
Jupiter and RugCheck are working on developing indicators to identify when the Permanent Delegate feature is in use. Slorg emphasizes the importance of due diligence when dealing with new tokens. Users should always thoroughly review transaction details and remain cautious to avoid falling victim to such schemes.
