Incident Overview
Raccoon Network and Freedom Protocol projects have withdrawn $20M in $BUSD tokens to a common address, having scamming their investors and the community.
The Raccoon network is an open world that is an all-new metaverse where players can build, own and monetise their data. Freedom Protocol, is a financial protocol, makes pledges easier and more efficient, providing the highest stable return of cryptocurrency.
The Freedom Protocol platform offered users to buy a $FREE token and automatically receive a refund of the cost of tokens every 15 minutes. Thus, they promised a yield of more than 183k%. At the end of June 2022, Freedom Protocol invested in the Raccoon Network crypto project and announced the beginning of cooperation. Freedom launched its IDO, and people began to buy more and more $FREE tokens, and this was just the beginning of the scam. After the IDO, users noticed that they could no longer sell their tokens, and all funds invested in the project were sent to a third-party address: https://bscscan.com/address/0xf800f274…469336
Examining the transaction chain of one of the involved addresses, it is seen that tokens were withdrawn through Binance Hot Wallets:
https://bscscan.com/address/0xdcf49591…843762#tokentxns
Involved addresses:
Scammer address (A): https://bscscan.com/address/0xf800f274…469336
Scammer address (B): https://bscscan.com/address/0x56bb6513…54502f
Scammer address (C): https://bscscan.com/address/0x088f4818…7f5b70
Scammer address (D): https://bscscan.com/address/0x4411e7aa…be1214
Incident Report
Protocol Information
What the Attacker Needed to Succeed
Understanding the prerequisites for this type of attack helps auditors identify protocols that are most at risk and helps developers build better defenses.
What Auditors Should Check
If you're auditing a protocol with similar architecture to Freedom Protocol | Raccoon Network, these are the critical security checks that could have prevented this incident (July 2022).
- Verify all logic paths related to Rugpull are guarded by proper access controls and input validation
- Review privileged functions (owner, admin, governance) for potential abuse vectors - centralization risks should be documented and bounded with timelocks or multi-sigs
Master these auditing techniques with hands-on labs and real exploit scenarios in the Smart Contract Hacking course.
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