Robinhood Chain Honeypot Scams Drain Wallets: Relay Protocol Issues Warning
Investors on the newly launched Robinhood Chain are falling victim to ‘honeypot’ tokens that drain wallets immediately after purchase. Relay Protocol, a cross-chain interoperability platform, has confirmed user reports of funds disappearing upon buying certain tokens.
Relay Protocol addressed the issue on X, clarifying that these incidents are not due to a wallet or infrastructure breach. Private keys and balances remain secure; the scam is contained within malicious token contracts.
Robinhood Chain, an Arbitrum-based Ethereum layer-2 network, launched on July 1, 2026, with much hype around tokenized stocks and DeFi. However, its permissionless nature has allowed scammers to deploy fake tokens at scale, often mimicking legitimate projects.
‘The honeypot typically lets a user buy the token but prevents selling or triggers an automatic transfer of funds to the attacker,’ Relay explained. One user reported a hidden storage mapping in a token contract that bypasses ERC-20 security checks.
‘There’s been an increase in scam tokens designed to remove themselves after purchase,’ Relay stated. ‘If you bought one, the funds you spent are unfortunately gone. We’re blocking these tokens as they show up.’
User Milo described being scammed by a token called ‘World,’ noting the scams started ‘a few days ago.’ Another user warned, ‘Check the damn contract before aping into a token.’
While Relay actively filters bad contracts, the issue is an old scam on a new chain. Similar patterns have occurred with other layer-1 and layer-2 launches. Traders are advised to verify contract addresses and perform small test swaps before committing larger sums.