Notorious Crypto Scammer Exploits Uniswap To Steal Funds

Crypto scams are widespread, a fact well-known to many. However, some of these scams are notably more severe than others. Certain scammers repeatedly execute the same type of rug pull, and their misdeeds sometimes extend beyond mere financial theft.

Recently, someone reached out to share their story with the public. Below is an account detailing a notorious crypto scammer along with a distressing testimony by a victim of his schemes.

Alleged Crypto Scammer Jeremy Cahen, Aka Pauly0x

The online pseudonym Pauly0x belongs to an individual with a troubling history of alleged crypto fraud. Hackernoon reveals that Jeremy Cahen, among others, faced a lawsuit by Yuga Labs in June 2022. The lawsuit accused Cahen, along with the controversial artist Ryder Ripps, of selling NFTs that infringed upon trademarks belonging to Yuga Labs as well as those of the Bored Ape Yacht Club, defrauding buyers of millions.

In February 2024, Cointelegraph reported that a judge sided with Yuga Labs, mandating that the defendants pay over $9 million in damages collectively. Although the original post on Reddit about Pauly0x allegedly stealing $286k in under an hour has been deleted, users on X (formerly Twitter) have publicly denounced Pauly0x for his fraudulent activities.

Opinions On Pauly0x

It is pertinent to understand the thoughts of former collaborators of Pauly0x, such as OG_Kenobi_Hello, on the long-term impact of what Pauly0x has done. Kenobi believes that this is just the tip of the iceberg regarding the accusations against Pauly0x.

Jeremy Cahen, also known as Pauly0x, seems to be notorious for executing a classic pump-and-dump crypto scam repeatedly. This method is familiar to many within the crypto community and follows a predictable pattern:

Launch a token.
Promote the token extensively on social media.
Either sell the tokens immediately after people invest or steal funds directly via a DeFi platform.

While variations exist, the core strategy remains consistent. The token may be hyped through mainstream social media like Twitter or through private channels on Discord or Telegram. Once investors purchase the tokens, their funds often become irretrievable, either through loss in value or outright theft.

A Cautionary Tale

Evidence shows that Cahen used a Solidity contract to enable users to provide millions in liquidity to Uniswap in exchange for a negligible amount of a scam token called PNDX. This token allowed others to transfer funds via wallets without the consent of the users.

Shortly after, the liquidity provided by users was siphoned off. Three hours post-launch, when the liquidity was already drained, Pauly0x finally warned against using Uniswap for PNDX purchases, but by then, the funds had already disappeared.

The ETH wallet ending in 6faf initiated the mining contract, a multi-signature wallet, and added liquidity to Uniswap just 30 minutes before Pauly0x shared the contract address. The developer exploited this contract and then sold through Uniswap. This information, publicly accessible through breadcrumbs and ETH scan, mirrors the outcome of another Pauly0x scheme, yougetnothing.eth, detailed in this Reddit thread: https://www.reddit.com/r/CryptoCurrency/comments/14f4drl/twitter_user_pauly0x_had_told_people_to_send_him/, where contributors to Pauly0x received nothing in return.