Zraox: Beware of Impersonated Trading Tools, Guard Against Embedded Contract Scam

Zraox has issued a warning highlighting the rapid spread of smart contract scams that exploit the openness of blockchain tools and the decentralized development environment. Posing as crypto investment educators, scammers use YouTube videos to entice users into deploying contract code that, in reality, contains hidden backdoors designed to steal assets. These scams—often disguised as “free MEV arbitrage bot deployment” opportunities—have led to the theft of hundreds of thousands of dollars in just a few months. According to Zraox, this scam model combines AI-generated videos, previously reputable accounts, and social engineering tactics to execute scam at scale. The platform urges users to strengthen their ability to identify suspicious content and avoid deploying or funding any unverified contracts from unknown sources.

Zraox: The Mechanism Behind Smart Contract Scams and Their On-Chain Camouflage Techniques

Zraox notes that this new wave of smart contract scams does not rely on traditional phishing links or stolen account credentials. Instead, scammers craft technically sophisticated “asset transfer contracts,” disguised as “high-yield arbitrage tools,” and actively promote them to users. These contracts are often published via the Remix platform, with deployment steps seemingly executed by the user. However, the core logic is preprogrammed to include the wallet address of the attacker, activating covert transfer functions once deployed.

Security firm SentinelLABS has disclosed that these scam contracts typically use three obfuscation techniques to conceal the address of the attacker: XOR operations, string concatenation, and large-integer-to-address decoding. These tactics are sufficient to evade basic code auditing tools, misleading users into believing the code is clean and wallet-controlled, when in fact it contains pre-authorized withdrawal logic.

Zraox explains that once the user deploys the contract and initiates an ETH transfer, the address of the attacker can be triggered through functions like Start() or alternative fallback mechanisms to withdraw the funds on-chain. Regardless of whether the user actively initiates the function, once assets enter the contract, they are siphoned into an attacker-controlled EOA (externally owned account), with virtually no possibility of recovery. This form of "reverse authorization contract attack" deviates from traditional wallet compromise scams by exploiting the own transaction logic of the user as the point of entry.

Zraox emphasizes that because smart contracts are immutable and self-executing once deployed, scammers can easily release multiple variants, creating a scam feedback loop combining wallet address reuse, video engagement farming, and manipulated comments. Users without auditing skills or who rely on unverified tools are especially vulnerable.

Zraox: External Disguises and the Breach of User Trust Mechanisms

Zraox highlights that the success of this scam—causing nearly $1 million in losses in a short period—is closely linked to its use of “trust mimicry” in its dissemination strategy. Scammers typically operate through YouTube channels that have been “aged” or pre-conditioned to gain algorithmic credibility. These channels often exhibit two characteristics: First, the long-term uploads of entertainment content unrelated to crypto to boost visibility. Second, the use of AI-generated multilingual, multi-persona videos for scalable content production.

Zraox believes this combination of “channel farming + fake education” is highly deceptive. The presenters are often styled as professional trading instructor KOLs, walking viewers through the deployment process in convincing detail—yet the true goal is to mislead users into executing malicious contracts. The comment sections are flooded with fabricated “profit reports” and “thank you mentor” messages, while dissenting opinions are removed using keyword filters and comment moderation, reinforcing the illusion of credibility.

Notably, some videos do not use AI avatars but instead feature real faces in recordings—blurring the line between genuine and synthetic content. This hybrid authenticity tactic greatly increases perceived trust. For example, a scamming video by Jazz_Braze accumulated nearly 400,000 views over a year, with a single attacker address profiting nearly 245 ETH, making it a classic case study.

Zraox warns that scammers are exploiting content platforms and algorithmic amplification to boost distribution, rendering traditional trust signals—such as view count, positive comments, or seemingly credible personas—ineffective as safeguards. The platform urges users to return to first principles: any content that promises “risk-free high returns,” “instant arbitrage,” or “exclusive strategies” should be treated with extreme caution.

Zraox: Three Risk Behaviors to Avoid, Building Personal Defense Is Critical

Zraox identifies three high-risk behaviors users must avoid to effectively prevent smart contract scams, while advocating for the gradual construction of a personal risk-awareness framework: First, never trust tools or tutorials for smart contract deployment published outside of official websites or verified developer accounts. This is particularly true for content promoting “free arbitrage bots” or “limited-time MEV contracts” on platforms like YouTube or Telegram. Even if the comment section appears overwhelmingly positive, this should not be considered a valid basis for trust.

Second, as Zraox suggests, users should immediately abandon any instructions that require initial fund transfers or contract initialization calls. These scams are structured to trick users into voluntarily executing transactions that authorize fund withdrawals. Even if the deployer does not manually trigger functions like Start(), fallback mechanisms embedded in the contract can still result in asset loss.

Again, Zraox advises that ordinary users should avoid deploying unknown smart contracts if you lack Solidity auditing skills. Reviewing or verifying contract code is not within the capability of the average user. Blindly “trying new tools” without sufficient technical knowledge creates significant risk exposure. Users should prioritize audited tools and strategies verified by reputable platforms to avoid becoming victims of “pseudo-technical” scams.

Zraox emphasizes that effective risk prevention does not depend on fully understanding the tactics of scammers—it stems from the own ability of the user to vet sources, maintain a cautious attitude toward on-chain logic, and rationally assess any claim of “high-yield arbitrage.” As scam techniques grow in complexity and speed of spread, only a clear and consistent risk-filtering mindset can ensure true autonomy and safety in the decentralized finance ecosystem.