Inside a $3M Crypto Scam: How a Group Exploited Investors

Disclaimer: This article is based on an X post by @BarryBaumX from February 9, 2025. The editorial team does not verify or take responsibility for the accuracy of the information provided. All claims and events mentioned reflect the opinions and observations of the original source.

The ArchFNF scammers aren’t just random fraudsters—they operate as a well-organized team following a carefully executed plan. Their strategy involves creating projects, attracting investors, and disappearing once they’ve accumulated a substantial amount of funds.

But they don’t stop there. Instead, they orchestrate new rug pull schemes every week, extracting millions of dollars in a continuous cycle.

They run a well-organized, ongoing operation. Their scheme is built for long-term fraud, demonstrating a high level of professionalism in deception.

ArchFNF’s Fraudulent Schemes and Methods

A rug pull is a scam where project creators drain all liquidity at the peak of a project’s hype and disappear, leaving behind defrauded investors and empty wallets.

To carry out their schemes, the scammers launched projects like Electron, Turnpool, Curve, MINE, and others. These names sound like legitimate crypto ventures, but in reality, they were traps that lured in thousands of unsuspecting investors. 

How does the scheme work? It’s quite simple.

These projects attract investor funds with promises of high returns, but from the very beginning, the goal is clear—to accumulate as much money as possible and disappear. Once the target amount is reached, the team withdraws the funds to their own wallets and vanishes, leaving investors empty-handed.

You can recognize such scams by their distinct price chart pattern—a sudden, complete crash. This kind of movement usually indicates a burst financial bubble. Even legitimate projects like Bitcoin go through market corrections, but their price history never resembles something built entirely on illusion. 

The lack of ethics among these scammers is evident in how easily they deceive not just strangers but even people they know personally. They have no hesitation in betraying former associates, including those they once worked with.

In a recent case, a group member proposed scamming their own friends. Rather than refusing, the individual went along with the plan and even expressed gratitude, knowing they would receive a share of the stolen funds.

This incident illustrates just how far some individuals will go for financial gain. It’s not just a fraud—it’s a calculated exploitation of others, where morality holds no value.

Look at Us, We’re Making Millions

The ArchFNF scammers are highly skilled at covering their tracks. Whenever they sense their actions are coming under scrutiny, they swiftly erase any incriminating evidence.

At first, they boast about their “profits” on social media, openly flaunting their success. They have shared screenshots of their earnings, proudly displaying how they successfully scammed another project. However, the moment the risk of exposure increases, they immediately delete any traces of their involvement.

Blockchain Transparency and the Challenge of Identifying Scammers

Blockchain provides a unique level of transparency, allowing transactions to be tracked and recorded permanently, making them accessible for public analysis. On the surface, this seems like an ideal tool for combating fraud, as transactions are visible, wallets can be monitored, and concealing illicit activity is nearly impossible.

However, scammers have learned how to exploit the system.

Despite blockchain’s transparency, they use a vast network of wallets to move funds, making it difficult to connect fraudulent projects to each other. By transferring money through multiple intermediary addresses, they effectively obscure the origins of their funds and cover their tracks.

This creates additional challenges in identifying criminals. While blockchain provides full visibility of their actions, gathering evidence for legal cases or even for public exposure requires substantial effort and resources.

It seems that the crypto community itself must show greater persistence in uncovering scammers who continue to exploit the system. In doing so, the benefit of transparency can truly be maximized.

How to Combat Crypto Fraud

Fighting crypto fraud requires not only transparent technology but also stronger actions from law enforcement, regulators, and the community. 

Be cautious and critical of projects that seem too “legitimate” at first. Always verify the information, research the reputation of the creators, and examine transaction histories. Keep in mind that lack of scrutiny can cost you not only money but also your reputation.

If you find yourself involved in such schemes, cut all ties with the participants immediately. The security of your investments and network is in your hands.

Related: Social Engineering in Crypto: Top 5 Fraud Schemes