Users report buying tokens that disappear from their wallet balances shortly after.
This new rug-pull method is raising major concerns among Solana users and the crypto community.
New Rug-Pull Tactic Targets Solana Users
The scam was highlighted by Slorg, a member of the Solana-based Jupiter Core Working Group. He detailed how scammers are leveraging a feature known as the “Permanent Delegate” extension within the Solana blockchain.
This extension, when misused, allows the scammers to burn or transfer tokens without the owner’s consent. In one reported case, a user swapped for a token named “RED,” which had this extension embedded. Just seven seconds after the transaction was completed, the scammers burned all the tokens, leaving the user with nothing.
Source: X
The “Permanent Delegate” extension is described on Solana’s official website as a function that grants unrestricted delegate privileges over all token accounts for a specific mint. This feature was originally designed for legitimate purposes, such as retrieving tokens mistakenly sent to the wrong address, managing revocable access tokens, or ensuring compliance with sanctions.
Additionally, it can be used for automatic payments and refunds, offering flexibility and functionality within the Solana network.
Source: X
However, in the hands of malicious actors, this extension has become a powerful tool for conducting sophisticated scams. The scammers’ ability to instantly burn tokens has left victims with no recourse, as the tokens are permanently destroyed moments after they are acquired. This has raised alarms about the need for increased security measures and user awareness within the Solana ecosystem.
Source: X
The situation underscores the risks associated with the rapid development and innovation in the cryptocurrency space. While features like the Permanent Delegate extension are intended to add utility and functionality, they also create potential vulnerabilities that can be exploited if not properly managed or understood by users.
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