Ethereum-based FairWin Contains Vulnerabilities Making It a Possible ‘Ponzi Scheme’
Fairwin, which is the biggest Ethereum contract in the crypto field, is supposedly risking investor’s funds, as it continues to chunk a quantifiable amount of gas.
Several crypto enthusiasts from social media have expressed their concerns about the Ethereum contract terming it as a rapid growing Ponzi scheme. Philippe Castonguay, the blockchain developer, warned on social media that this Ponzi scheme had serious vulnerabilities and was putting all the funds at risk.
He told people to spread the news that users should immediately withdraw their money and cease from any interactions with the contract, especially in Asia.
FairWin has been called a Ponzi scheme, but its structure closely resembles a pyramid scheme where network effects benefit the early adopters of the program.
Crypto Detectives at Work
A Dune dashboard has been assembled by a security researcher Harry Denley that gives an overview of this contract and the creators’ exploits.
Henry says that the FairWin contract is probably a Ponzi scheme that holds a substantial amount of Ethereum in it. His dashboard has a link to a thread on Reddit that is collecting details of about 6 Ethereum wallets. These wallets are said to be accounting for the fluctuation values of gas used by the network. They are also allegedly spamming deposits to the contract address.
The Ether Gas station records that the FairWin contract makes up more than 60% of gas utilization on Ethereum. FairWin is said to be holding Ether worth $8 million as per now.
Biggest Scam on Ethereum
A Reddit contributor said that FairWin is mostly shared on Chinese blogs and social media. He also noted that it supposedly works as an investment program for five days. Ethereum users will have to deposit 1-15 ETH, and after five days they will receive a percentage return of between 0.5-1%. The post says that this may be among the biggest scams ever experienced in Ethereum.
Castonguay pointed out that even though there is no evidence that vulnerabilities have already been used, the contract is a looming time bomb to the users and investors.