The Proliferation of Honeypot Contracts in Web3

This report documents a widespread honeypot scam campaign on Binance Smart Chain: contracts deploy a greylist mechanism that adds buyers to a tokenGreylist preventing sales, while whitelisted controlled wallets perform wash trading to create fake liquidity and attract buyers. The analysts identify hundreds of similar contracts, specific EOAs and unverified contract factories, examples of rapid token creation and liquidity manipulation, and fund flows that include Tornado Cash withdrawals followed by deposits to an exchange, concluding these schemes are scalable, actively exploited, and evolving to evade detection.