Holding $7.6 million, Ethereum's most gas-consuming contract, FairWin, is accused of being a Ponzi scheme.

Currently, the largest Ethereum contract FairWin (gaming game) is accused of putting user funds at risk and continues to consume large amounts of gas on the network.

Multi-bit cryptocurrency social media users have been analyzing the "Ponzi scheme" that they believe is the fastest growing in Ethereum. On September 27th, blockchain developer Philippe Castonguay said:

“The FairWin Ponzi scheme contains a major loophole that puts all funds at risk. Spreading the news (especially in Asia), users need to withdraw their funds and stop interacting with the contract as soon as possible.”

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Password community detective in action

Harry Denley, a security and anti-phishing researcher at Meta Cartel Ventures, compiled a detailed chart outlining the behavior of the contract and its creators.

Denley pointed out that "The FairWin contract is a Ponzi HYIP (high-risk investment) scam that holds a large number of Ethereum."

His form contains a link to a post from Reddit that provides details of the six Ethereum wallets. These wallets are said to account for a large portion of the network's usage of gas (floating above 50%), allegedly sending deposits to the same contract address .

Castonguay said there is no evidence that the vulnerability has been exploited, but he pointed out three of the main vulnerabilities:

“The first is to allow the contract holder or manager to withdraw all funds; the second is that the manager can make the user never get back the funds; the third is not only the contract holder, anyone can steal new deposits. Unexploited vulnerabilities may have more."

One of the biggest "Ponzi schemes"?

Reddit net friend chutiyabehenchod pointed out in a post on September 20 that FairWin is said to be mainly distributed on social media and blogs in China. It is a five-day high-yield investment project. It is said that users are depositing 1 to 15 ethers. After the workshop, you can get a return of 0.5% to 1%.

“It’s decentralized. However, only 70% of the funds deposited are used to pay commissions for existing deposits… The other 30% are always occupied! Once the account funds are all removed, those who have joined People will have nothing… some of them may be reinvested. Currently the contract holds 40,000 Ethereum (as of press time, 44,871, worth $7.6 million), of which 12,000 have been used for unknown scams."

The netizen concluded that FairWin may be "one of the biggest scams in Ethereum's history."

Community members further claimed that the contract was easy to “take money from the holders,” one commenter said. “If the holder does not stop (using the funds themselves) the contract, Black Hat may also attack. ”

For the above allegations, FairWin issued a notice saying that the risk of stolen funds does not exist, FairWin's "smart contract code has been safely certified." The notice also said that the statement that FairWin is a Ponzi scheme is "misleading."

Ethereum network congestion

According to Babbitt, the Ethereum miners have raised the gas cap and tried to improve transaction processing capacity as a direct response to network congestion.

Some people believe that the increase in Ethereum network usage is not only because of the suspected Punjab scam project that consumes a lot of gas, but also because "the stable currency Tether is gradually shifting from the Omni layer to the Ethereum blockchain.

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