Security Analysis of Ponzi Schemes in Ethereum Smart Contracts

Abstract: The rapid advancement of blockchain technology has precipitated the widespread adoption of Ethereum and smart contracts across a variety of sectors. However, this has also given rise to numerous fraudulent activities, with many speculators embedding Ponzi schemes within smart contracts, resulting in significant financial losses for investors. Currently, there is a lack of effective methods for identifying and analyzing such new types of fraudulent activities. This paper categorizes these scams into four structural types and explores the intrinsic characteristics of Ponzi scheme contract source code from a program analysis perspective. The Mythril tool is employed to conduct static and dynamic analyses of representative cases, thereby revealing their vulnerabilities and operational mechanisms. Furthermore, this paper employs shell scripts and command patterns to conduct batch detection of open-source smart contract code, thereby unveiling the common characteristics of Ponzi scheme smart contracts.