Fraud in the crypto community is a serious problem, and it continues to hamper the growth of the immensely beneficial technology that is blockchain and cryptocurrencies. Given the potential, efficiency, and freshness of the technology, however, this shouldn’t be a surprise to anyone.
A technology with so much potential will always attract malicious individuals. And despite numerous successful attempts to increase security around crypto projects, there will always be heartless individuals who will seek to directly take advantage of gullible people in search of quick wealth.
We believe the ultimate objective of every serious stakeholder in the cryptosphere should be to ensure that the community continues to grow even in spite of these heartless individuals, and that we take it upon ourselves to expose them whenever we can. Thin out the weed, so to speak.
It is for this reason that our attention was called to a telegram group that we found to be the biggest fraud crypto call group on Telegram; a group known, quite ironically, as “Rug Free House”.
“Rug Free House” – The Biggest Crypto Fraud Group
The group, which is run by a man called “RugFreeBoy”, has been known to defraud investors using a technique known as soft rugging. Before we start to unpack the heavy irony in that, it is worth clarifying a few terms for those who might not be too familiar with these antics.
First of all, crypto call groups are communities, usually on Telegram or Discord, which people join to discover valuable coins before they become popular, or to learn about popular coins that are bound to become even more valuable.
These groups usually have experts like “RugFreeBoy” making the calls. From merely looking at the way they operate, it is obvious that these communities are highly susceptible to fraud and scams.
Now it should be noted that not all call groups are fraudulent like Rug Free House. Some groups offer genuine insights. It is only when they start to engage in malicious activities such as fake bot reviews, faks statistics pump, faulty calls, fake comments, and ultimately defrauding investors, that they become very toxic for the community.
Rug Free House has been caught in all of these malpractices by numerous investors – and they don’t even bother hiding it.
Soft Rugging by “Rug Free House”
Rug pull has been a threat to crypto survival right from the beginning. A classic rug pull occurs when project developers and insiders suddenly withdraw their token liquidity and run away with the funds, making it worthless and screwing over everyone who holds it in the first place.
Rug pulls, though, are too blatant and pedestrian for some. For people like RugFreeBoy, the ultimate fraud technique is the Soft Rug. In Soft rugging, instead of pulling everything at once, what the project runners do is they simply get a lot of people in, keep the hype going as long as possible, and then dump their own tokens and exit immediately, leaving the users’ assets virtually worthless.
For soft rugs to be more efficient, fraudsters like RugFreeBoy go through the process of creating huge telegram channels, populating them with bots and fake enthusiastic comments so as to make their calls appear more legit and enticing than it really is.
Fake Comments and Botting in Rug Free House
The secret behind any successful scam is trust. In the crypto sphere, trust is built by reputation, hype, and reviews. To generate this trust and hype, RugFreeBoy leverages the power of telegram, wherein he posts malicious calls such as the one highlighted below, and has hundreds of bots post on the call. These bots express interest and excitement. They talk of their faith and confidence in the project. They express huge admiration, making it seem as though the project is a highly popular one with huge potential.
Of course, when more naive investors see the call and the enthusiasm expressed in its comment sections and in the group chats, they make their move, and invest as much as they can afford, not knowing that RugFreeBoy himself is among the owners of the project, and is about to run away with their hard earned money.
The Notorious Squad Game – A Recurring Act
For RugFreeBoy, soft rugging is a lifestyle and not a newly developed bad habit. RugFreeBoy and his squad have a history of fraud even before the popularity of his current Telegram group.
Their present shenanigan, though, truly took off after the group was created on October 11th, 2021*. Since then, they’ve engaged in various rug pulls including the notorious Squad Game project that left tons of people in lifelong pain.
Once his current pull is done, he deletes his group, vanishes, and starts over. The audacity of RugFreeBoy is so pronounced that he doesn’t even bother covering up his tracks afterwards.
Apart from defrauding gullible users and investors, RugFreeBoy also has a history of defrauding developers.
His strategy in this case is usually to take money from the project owners, for the purpose of making a call for their projects. Once an agreement is made, they set a date for the call, but of course, the call never comes.
He takes the money, procrastinates, and eventually vanishes without ever making a refund.
Looking towards the Future
There will always be heartless, unscrupulous individuals in the crypto sphere looking to build a fortune by defrauding helpless investors. It is up to us as a community to come out and take a stance against people like RugFreeBoy and his crew.
It is the only way the cryptosphere can continue to grow, and it is the only way we can aim to get closer to mass adoption, which will ultimately ensure that the whole world benefits from the wonderful things Blockchain and cryptocurrencies have to offer.