Relay Protocol warns of scam tokens on Robinhood Chain after wallet-drain reports

Relay Protocol said it is blocking scam tokens appearing on Robinhood Chain after reports of wallet drains tied to malicious token contracts rather than a broader compromise of user wallets or Relay’s infrastructure. The protocol said private keys and other balances remain secure because the scam logic is embedded in the fraudulent contracts themselves. Robinhood Chain, an Arbitrum-based Ethereum layer two (L2) network, went live on July 1, 2026 with attention around tokenized stocks and decentralized finance (DeFi). Its permissionless design has also allowed bad actors to launch fake tokens and meme coins at scale, saturating early onchain activity and exposing inexperienced traders to honeypot-style scams. Relay Protocol said on X: “There’s been an increase in scam tokens designed to remove themselves after purchase. If you bought one, the funds you spent are unfortunately gone. We’re blocking these tokens as they show up and verifying safe ones”. One user, Milo, said: “I was also scammed by a token called World,” while another user warned, “Goodness people check the damn contract before aping into a token.” Newer reports described tokens disappearing from wallets after purchase and becoming impossible to sell or transfer, behavior Relay said is consistent with honeypot contracts that trap investor funds. A honeypot can let users buy a token while preventing them from selling, or route funds to an attacker’s wallet through hidden contract logic. Relay said traders should stick to verified tokens, confirm contract addresses, and use small test swaps to reduce the risk of a total loss. The protocol added that unusual trading patterns, including heavy buying pressure with no selling activity, are a major warning sign.