90 Days, $1.5 Billion TVL: Is Robinhood Chain a Cash Cow for Meme Coin Scammers?

Mass issuance of tokens and capital circulation for new projects, with over $9 million in transactions in 30 days.

Written by: Oluwapelumi Adejumo

Compiled by: Saoirse, Foresight News

As this rapidly evolving network attracts more organized fraudulent activities, another suspected Meme coin "exit factory" has surfaced on Robinhood Chain.

On September 28, blockchain security firm GoPlus reported that it discovered hundreds of Meme coins associated with high-risk operations, with related funds circulating through a unified collection network totaling over $9 million in the past 30 days.

According to GoPlus, the group created new wallets in bulk to collect and sell tokens, then transferred the proceeds to associated addresses. As of September 28, their main collection wallet had approximately 3,589 ETH flowing in both directions in the last 400 transactions, worth about $9.49 million.

GoPlus specifically noted that this figure represents total fund flow, not net profit or actual losses for investors. However, the wallet activity reveals a replicable model: the proceeds from a batch of token issuances are used to fund the next round of new projects.

Operators create tokens around popular narratives, distributing token shares to nearly transaction-less new wallets, and then complete sales through contracts like PonsV2Helper and UniversalRouter. The ETH obtained from sales first passes through intermediary wallets before being aggregated into larger funding clusters.

This method can obscure the actual number of tokens controlled by the group. Instead of a single wallet dumping a large amount at once, dozens of seemingly unrelated addresses sell in phases, disguising themselves as independent market transactions, with funds ultimately consolidated elsewhere.

GoPlus stated that this model differs from traditional exit scams—traditional scams directly withdraw liquidity and prevent buyers from selling. The risk in this case lies in the coordinated control and selling behind seemingly independent wallets, with funds being cyclically reinvested into subsequent token issuances.

Early Group Swindled $18.4 Million from 53 Token Projects

Previously, on-chain researcher Wazz had already discovered another series of suspected exit events on Robinhood Chain, claiming that the group profited approximately $18.43 million from at least 53 Meme coin issuance projects over about two months.

The group employed a variant of the same strategy: after a project launched, a cluster of 70 to 200 wallets would buy tokens in bulk, often controlling over 70% of the total token supply.

Wazz also found financial connections between consecutive projects: funds from the previous project would be transferred to wallets to initiate new projects. This model indicates that the group's profit funds are recycled rather than directly withdrawn after each cash-out.

GoPlus noted that both cases share several commonalities: extensive use of the Pons V2 tool, bulk wallets hiding the concentration of chips, and funds rolling between multiple token projects. Security agencies also remind that there is no evidence proving that the two wallet clusters belong to the same operators. The new group relies more on newly created wallets to aggregate funds; the group discovered by Wazz had already utilized large wallet clusters to control token supply early in the token launch.

This difference indicates that there is more than one team involved in the fraud. Different wallet structures can achieve the same profit logic, allowing the group multiple ways to disguise coordinated dumping as normal trading.

This presents a greater detection challenge for wallets, launch platforms, and trading interfaces: the token contracts themselves function normally, but the chips are dispersed across dozens of associated addresses, making it difficult to identify risks solely by scanning for malicious code.

The Rapid Expansion of Robinhood Chain Amplifies Risks

As these suspected exit factories continue to emerge, Robinhood Chain is expanding at an unprecedented speed.

According to DeFiLlama data, this Ethereum Layer-2 network officially launched on July 1, and as of the time of writing, its total locked value has surpassed $1.5 billion, achieving this in less than 90 days, a remarkable growth rate.

Token Terminal estimates that Robinhood Chain generated approximately $50 million in revenue in about three months, enough to demonstrate high trading activity on the network.

Robinhood Chain's revenue surged to about $40 million in September, with total cumulative revenue reaching $50 million. Data source: Token Terminal

Robinhood's potential comes not only from fees generated by native crypto users. The brokerage has 28.6 million funded clients, managing assets of approximately $384 billion, providing developers with opportunities to build on-chain products that reach this vast pool of financial clients.

However, this significant traffic advantage also means that if malicious token issuances are not intercepted early, the cost of losses could be even higher.

The permissionless network allows external developers to deploy contracts without Robinhood's individual review. However, applications and interfaces that users access for on-chain products can still enhance risk screening, wallet alerts, and chip concentration analysis features.

The exposure of the second suspected exit factory means that it has become increasingly urgent for Robinhood to establish such security mechanisms before guiding more brokerage users onto the chain.

For Robinhood, the commercial challenge lies in maintaining an open ecosystem to ensure rapid chain development while preventing organized token manipulators from exploiting this channel to harvest massive retail funds.

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