Blockchain

Story: Scam Tokens on Robinhood Chain Drain Buyer Wallets, Relay Warns, as DEX Volume Hits $400M

By Julie Binoche

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Permissionless Chain, Real Consequences. Robinhood Chain launched its permissionless public mainnet on July 1.

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What Relay Said — and Didn't Say. Relay said it's working to block suspicious tokens and verify safe ones.

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Bigger Picture for DeFi on Robinhood's Network. Permissionless environments carry this risk by design.

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Some buyers of tokens on Robinhood Chain are losing money. According to cross-chain transaction protocol Relay — which flagged the problem publicly — certain scam tokens vanish…

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The losses aren't tied to hacked wallets or stolen private keys. Relay was clear on that. Other balances in affected wallets stayed intact, which means the problem isn't a broad…

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Robinhood Chain launched its permissionless public mainnet on July 1. The network targets Robinhood's customer base of nearly 28 million users across 38 countries — though those…

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That's the tradeoff. And it's biting users now.

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Decentralized exchange volume on Robinhood Chain hit close to $400 million on July 7. That spike came right after Pump.

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Relay runs a separate bridge and swap interface that supports Robinhood Chain. It screens tokens against sanctions lists and maintains an internal risk database.

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Relay said it's working to block suspicious tokens and verify safe ones. It didn't publish a blocklist. It didn't name specific contracts.

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See also: Bitcoin Drops Below $63,000 as Asian Session Leverage Flush Hits 6x Below Monthly Peak

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Robinhood's own guidance tells users to check transaction details before proceeding, especially for tokens where balances might disappear after purchase.

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The Robinhood Wallet support page says in-app swaps get routed through 0x API and LI.FI. Whether either of those platforms pushed warnings to users about unverified tokens before…

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Relay also made a point of separating the chain problem from Robinhood Wallet transactions and other brokerage products. The losses are on the chain, not inside the brokerage.

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Permissionless environments carry this risk by design. No approval gate means faster innovation and also faster fraud.

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