Robinhood Chain hit by honeypot token scams, Relay blocks

Relay Protocol posted on X that investors on the newly launched Robinhood Chain are encountering honeypot tokens that prevent selling and can drain funds after purchase. The protocol said it is actively blocking malicious contracts where possible and warned that funds used to buy some tokens may be permanently lost.

Robinhood Chain, an Arbitrum-based layer-two network that went live on July 1, 2026, opened as a permissionless chain for tokenized stocks and decentralized finance. Early activity on the network has included a large number of meme coins and unverified projects. The permissionless design allows anyone to deploy tokens, and bad actors have published contracts that permit buys but restrict or disable sells or immediately move purchased funds to attacker wallets.

Honeypot tokens typically let a wallet purchase tokens while embedding rules that block selling or trigger transfers to other addresses. One user reported a contract that used a hidden storage mapping to bypass standard ERC-20 checks and drain assets without explicit approval. A user identifying themselves as Milo wrote, “I was also scammed by a token called World.” Other users reported tokens disappearing from wallets immediately after purchase.

Relay said the behavior is contained to malicious token contracts and is not the result of an infrastructure breach or private key compromise; other balances and keys remain secure. The protocol described ongoing scans to find and filter harmful contracts and to verify safe tokens for users.

Relay advised traders to use tokens verified by trusted sources, check contract addresses, and perform small test swaps before committing larger sums. The protocol flagged unusual market behavior-such as heavy buying with no selling activity-as a warning sign of potential honeypots. It also noted that funds spent on scam tokens are often unrecoverable.

Developers and users building on Robinhood Chain were urged to apply standard security checks and promote verified listings to reduce the risk to retail traders. Traders entering the network were told to proceed cautiously and confirm a token’s normal buy-and-sell behavior with minimal capital before larger trades.