Recently, a new "cross-chain arbitrage" scam has emerged on Fantom, causing significant user losses. This article explains how the scam works, helping you identify and avoid it to protect your assets.
How is the scam packaged?
Scammers claim that stablecoins like USDC, DAI, or TUSD are much cheaper on Fantom than on major chains like Ethereum. They lure users with the promise of easy arbitrage: buy low on Fantom, bridge to another chain, and sell high.
It sounds like a "risk-free, high-reward" opportunity—which is exactly what makes it so convincing. But these tokens, despite their familiar names, are worthless. They come from defunct cross-chain bridges and are no longer redeemable.
A cross-chain bridge lets users transfer assets between blockchains. Here's how it typically works:
- Users deposit USDC into a bridge contract on Ethereum
- The bridge then issues an equivalent amount of "bridged tokens," also named USDC, on the target blockchain (e.g., Fantom)
- Normally, users can later redeem these tokens back into genuine USDC on Ethereum.
This process only works if the bridge is functional and secure.
Where does the problem lie?
In 2023, the Multichain bridge suffered a major exploit, leading to its collapse. As a result, all bridged tokens issued by it — like USDC, DAI, and TUSD on Fantom — became unredeemable.
These tokens still appear in wallets and block explorers, often showing a nominal value (e.g., $1), but in reality, they are “air tokens” with no real-world worth.
Scammers exploit this illusion by claiming Fantom stablecoins are “undervalued” and trick users into swapping real assets (like ERC20 USDT) for these worthless tokens.
Current Status of Fantom
The Fantom network is in decline:
- Many projects have been abandoned
- Network activity has dropped sharply
- Major exchanges no longer support deposits/withdrawals for most Fantom assets
- Only native FTM tokens are eligible for migration to new networks
Bridged stablecoins are stuck — unable to trade, circulate, or bridge out. Those “cheap stablecoins” on Fantom? Effectively dead assets.
Case Study
A user named Jason fell victim to a carefully orchestrated scam on the Fantom network.
Step 1: The Setup
Jason was contacted via social media by someone posing as an “investment advisor.” They claimed to have discovered a “zero-risk arbitrage” opportunity: TUSD on Fantom was trading below $1 — buy low on Fantom, sell high on Ethereum.
To gain trust, the scammer sent a small amount of Fantom-based TUSD to Jason’s wallet. It showed up at ~$1, reinforcing the illusion of legitimacy.
Step 2: The Test
Jason was encouraged to “test” the strategy. He sent 462 Fantom-based TUSD to his exchange address.
Here’s the trick: The scammer simultaneously sent 462 real TUSD (ERC20) to the same address. Since the exchange supports ERC20, it accepted the deposit — making it look like the Fantom TUSD was credited successfully.
Jason thought it worked. Trust was built.
Step 3: The Big Move
Convinced, Jason exchanged a large amount of ETH and USDT for “cheap” Fantom TUSD, expecting to repeat the deposit process.
But this time — nothing arrived. The exchange didn’t support Fantom-based TUSD at all. The earlier “success” had been a sleight of hand.
Only then did Jason realize: he had traded real assets for worthless tokens.
Scam Breakdown
1. Visual Deception
Fantom TUSD still shows a $1 price in some wallets and explorers, misleading users into thinking it’s legitimate.
2. Same Name, Different Networks
“TUSD” exists on both Ethereum and Fantom, making it easy to confuse source networks when checking wallet balances.
3. Fake Deposit Success
Scammer sends ERC20 TUSD to make it look like a Fantom-based token was successfully deposited, building false trust.
4. Final Trap
The victim is encouraged to swap real assets for fake tokens — resulting in total loss.
How to Stay Safe
- Don’t trust the displayed price alone
Token value depends on real trading pairs and liquidity. If a token has no market activity, even a $1 price tag is meaningless. - Beware of “risk-free” opportunities
Terms like “guaranteed profit” or “insider strategy” are common scam bait. Anyone offering to “help you make easy money” is likely setting a trap. - Always check the source network
Don’t just look at the amount—inspect transaction details. Verify the network (Fantom vs. ERC20) and the sender address to avoid being misled. - Avoid compromised protocols and chains
Assets from exploited bridges like Multichain are no longer redeemable. Avoid transferring or authorizing any funds to risky or unknown protocols.
imToken is committed to providing a secure wallet environment and has updated Fantom token price displays to prevent user confusion. But ultimately, your best protection is a strong sense of caution and awareness.
imToken Is Always Protecting Your Token Security
In June, imToken marked a total of 5473 risky tokens, banned 469 risky DApp websites and marked 1551 risky addresses.
In addition, if you find any suspiciously risky tokens or DApps, please contact us: support@token.im to help more users avoid token losses.
Closing Thoughts
Scams are constantly evolving, it is indeed challenging for average users to fully prevent them. imToken is committed to rapidly detecting issues and finding solutions,providing timely messages to the community, and educating users about various types of scams to protect them from losses.
We encourage you to read and share imToken Wallet Security Monthly Report and join hands with imToken to safeguard your token security.