Ethereum L2 Scammers Copy Legit Projects to Drain Funds

Ethereum users are facing a growing threat from fake Layer-2 (L2) networks, which can copy legitimate projects and websites to deceive investors. These scams often use convincing infrastructure, including working RPCs and successful transactions, to make their networks appear genuine.

The danger arises when users bridge real ETH into these fake networks. The fraudulent bridges can accept deposits while the promised L2 is not actually official. In a recent case, a fake GIWA network attracted around 767 ETH from over 1,300 addresses before draining approximately 766 ETH from the bridge.

To avoid falling victim to these scams, users should carefully check the L2's official website, launch status, Chain ID, RPC URL, bridge contract, block explorer, and contract addresses. Ethereum recommends setting spending limits to only the amount needed when giving a smart contract access.