Robinhood’s Twitter Account Promotes Scam Token on Binance’s BNB Chain

On Wednesday, the online stockbroker Robinhood (HOOD) promoted the launching of RBH, a new scam token on the BNB Chain, on its social media pages, introducing it to the list of organizations adversely affected by cryptocurrency frauds.

The debut of the RBH token on the Binance Smart Chain was quickly assumed to be a bogus cryptocurrency project by the crypto ecosystem, which also speculated that Robinhood's social media profiles, which had 1.6 million followers across Instagram, Twitter, and Facebook, had been infiltrated.

Changpeng “CZ” Zhao, CEO of Binance, stated that it “looks like Robinhood's account got hacked” and reiterated the significance of using conceptual understanding when evaluating a coin's campaign on the BNB Chain.

The Robinhood post has since been deleted, however as of the time of publication, 61 addresses still hold RBH, and according to BscScan, $16,335 value of encased BNB had been converted for the 'new' token in a PancakeSwap liquidity provider.

Robinhood after learning of the unauthorized social media posts released a statement mentioning that “Based on our ongoing investigation, we believe the source of the incident was via a third party vendor”.

These efforts are anticipated to continue despite the fact that the amount of money lost is still very minimal compared to the tremendous hacks that happened in 2022, like the $325 million from the Wormhole bridge attack and the $200 million from the Nomad bridge breach.

Binance has certainly had to issue an alert regarding hackers targeting its consumers before. According to cryptocurrency risk management startup Solidus Labs, 12% of all BEP-20 tokens, the standard token on the BNB chain, are connected to frauds.

Additionally, customers are informed that the RBH token is “high risk” and comes from an “unknown source” prior to actually performing a deal between WBNB and RBH on PancakeSwap, a cryptocurrency exchange assembled on the BNB Chain.

How it occurred:

The fraudster obtained some BNB, the Binance native token, worth roughly $1,000 from a Binance hot wallet that happens to contain $19.6 million in various tokens, resulting in today's scam (Tx1 and Tx2).

Before conducting a transaction that produced 100 million RBH tokens into its address, the fraudster first carried out a series of test transactions to create BEP-20 tokens (Tx3, Tx4) and to increase liquidity for Pancake Swap pools (Tx3, Tx4).

In order to add the 100 million RBH tokens and 3.1 wrapped BNB tokens as liquidity to the PancakeSwap liquidity pool, the fraudster then facilitated a transaction.

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