Robinhood Chain Scam Tokens Trigger Wallet Concerns as Relay Confirms User Funds Lost

Robinhood Chain has recorded high growth in trading activity and bridged assets since its launch, but the network is also facing reports of scam tokens affecting early participants. Relay Protocol confirmed that some users have purchased illicit tokens made to disappear from their wallets immediately after a transaction, leading to permanent losses of the funds used to make those purchases.

The clarification came as social media users shared screenshots and complaints after seeing newly purchased memecoins vanish from their wallets, raising concerns about token safety on the recently launched Ethereum Layer 2 network.

Relay Says Scam Tokens Are Responsible for Missing Assets

Relay Protocol said it is aware of reports of tokens disappearing after purchase on Robinhood Chain. According to the protocol, the issue is linked to scam tokens intentionally designed to be removed from a user’s wallet after the transaction is completed.

The company stated that anyone who purchased one of those tokens has lost the funds spent on the transaction. However, it emphasized that the incidents do not involve compromised wallets or stolen private keys.

Relay added that users’ remaining wallet balances remain secure and that no assets beyond the specific scam token purchases are at risk. The protocol also said it identifies and blocks malicious tokens as they appear while verifying legitimate tokens. It reassured users that anyone can create and list a token and encouraged them to interact only with assets verified by Relay or another trusted source.

Users Report Losses After Buying Memecoins

The warning followed multiple public complaints from Robinhood Chain users who said tokens disappeared shortly after purchase.

One user claimed a memecoin available through the Robinhood wallet vanished immediately after the trade, saying it was their first experience buying a memecoin. Other posts argued that similar incidents could discourage new participants from entering the cryptocurrency market.

The reported cases emerged as speculative trading activity increased across Robinhood Chain during its first week of operation.

Robinhood Chain Activity Continues to Expand

Despite reports of scam tokens, on-chain activity on Robinhood Chain has continued to grow since its July 1 launch.

The Ethereum-compatible Layer 2 network surpassed $70 million in bridged Ether during its first week, according to Token Terminal. The analytics platform said continued adoption of the network could become a meaningful source of demand for Ether.

Additional network data showed total value locked exceeded $106 million, supported by institutional deposits into the Morpho lending protocol. Daily Uniswap trading volume also reached approximately $500 million, while Robinhood Chain later surpassed Hyperliquid in 24-hour decentralized exchange trading volume after recording between $560 million and $570 million in daily DEX volume.

Related: Robinhood Launches Robinhood Chain With Tokenized Stock Trading