Blockchain security firm PeckShield has issued an urgent alert after detecting dozens of fraudulent BingChatGPT tokens designed to trap unsuspecting investors in honeypot schemes. The discovery, made on February 20, 2023, highlights the growing intersection of artificial intelligence hype and cryptocurrency fraud, as bad actors rush to exploit the global fascination with AI-powered chatbots.
The Exploit Mechanics
According to PeckShield’s on-chain analysis, a single deployer identified by the wallet address 0xb583 created dozens of tokens branded with variations of “BingChatGPT” and “ChatGPT” across multiple decentralized exchanges. The tokens operated as honeypots — malicious smart contracts that trick users into transferring Ethereum (ETH), which the attacker then traps and retrieves. At least three of the identified tokens functioned as honeypots, while two others imposed prohibitively high sell taxes that effectively prevented investors from cashing out.
The attack was particularly devastating in its speed. Two of the fraudulent tokens lost over 99% of their value almost immediately after launch, while a third plummeted by 65%. The deployer behind these tokens used a classic pump and dump methodology, creating artificial hype around the tokens before draining liquidity.
Affected Systems
The fake tokens primarily targeted decentralized exchanges on Ethereum and BNB Chain, where anyone can create and list tokens without rigorous vetting. With Bitcoin trading at approximately $24,829 and Ethereum at $1,702 on February 20, the broader crypto market was experiencing a notable rally, creating conditions ripe for speculative behavior. The timing was calculated to coincide with the peak of ChatGPT-related hype, as Google Trends data showed that searches for “crypto AI” had reached a perfect score of 100 earlier in February 2023.
PeckShield noted that the tokens leveraged brand names associated with Microsoft’s Bing chatbot integration and OpenAI’s ChatGPT, neither of which has issued any cryptocurrency. The fraudulent naming strategy aimed to confuse retail investors who might assume a connection between the popular AI tools and the tokens they encountered on DEXs.
The Mitigation Strategy
PeckShield’s rapid disclosure helped limit the damage by warning the community before the tokens could gain wider traction. The security firm recommended that investors verify token contracts through reputable blockchain explorers and security tools before making any purchases. Key mitigation steps include checking token contract code for honeypot functions, reviewing sell tax parameters, and verifying whether the purported team behind a token has any legitimate connection to the brand it references.
Investors should also be skeptical of any token that appears suddenly in the wake of a major tech trend. The pattern of creating fraudulent tokens to capitalize on hype cycles has repeated across the crypto space, from DeFi summer to the NFT boom and now the AI revolution.
Lessons Learned
This incident underscores a fundamental vulnerability in permissionless token creation systems. While decentralized exchanges offer valuable financial inclusion, the lack of vetting creates an environment where scammers can operate with minimal friction. The ease with which deployer 0xb583 created dozens of fraudulent tokens demonstrates that the barrier to entry for bad actors remains disturbingly low.
The convergence of AI hype and crypto speculation creates a particularly dangerous environment. As AI tools capture mainstream attention, the temptation to invest in “the next big thing” can override normal due diligence practices. The PeckShield alert serves as a reminder that in the crypto space, skepticism is not just healthy — it is essential for survival.
User Action Required
If you encounter any token claiming affiliation with ChatGPT, Bing, or any other AI platform, treat it as a potential scam until proven otherwise. Verify the token contract on a blockchain explorer, check for security audits, and search for official confirmation from the purported issuer. Never invest based on hype alone, and always use security tools like token sniffer or honeypot detectors before interacting with unfamiliar contracts. The crypto market rallied 14% in the week leading to February 20, 2023, but preserving those gains requires vigilance against the threats that accompany every rally.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.
wallet 0xb583 created dozens of tokens and nobody flagged it until peckshield. dex platforms really need deployer-level pattern detection
a single deployer 0xb583 creating dozens of fake bingchatgpt tokens with honeypot contracts. some lost 99 percent of value immediately. how do people still fall for this
because the first 5 minutes of a token launch are pure fomo. nobody checks contracts when the chart goes vertical
nobody checks contracts when the chart goes vertical because everyone thinks they can exit before the dump. the greed multiplier is insane during AI hype cycles
two tokens with 99 percent dump and a third down 65 percent, but people still bought in. greed overrides due diligence every single cycle
greed plus AI hype is the most dangerous combo. throw in a chatgpt label and people lose all critical thinking
^ the sell tax trick is the nastiest part. you can buy but the contract wont let you sell. pure trap
peckshield flagged it on the 20th but those tokens were already trading for hours. dex screening tools need to integrate honeypot detection at the contract level, not after the fact