Scam Allegations Surround New Privacy Layer-2 Project Shade Network

A newly launched privacy-focused Layer-2 blockchain project, Shade Network, has come under intense scrutiny following a wave of allegations from Crypto Twitter. Critics warn of potential links to a previous rug pull, phishing risks, and a lack of verifiable project fundamentals.

The controversy has escalated quickly, prompting multiple security warnings and public retractions from early promoters. While Shade Network has not confirmed any wrongdoing, the claims have raised serious questions about user safety.

A team that scammed people for $1.8M by presale launch recently is now shilling another new project named @Shade_L2

and it is gaining enough traction already since they came up with waitlist form to attract more people

november 2025 :

OmneraUSD had come up with privacy focused… pic.twitter.com/JKPj68d7dj

— Morsy (@morsyxbt) January 1, 2026

What Is Shade Network?

Privacy coins are the biggest crypto narrative heading into 2026. And Shade Network is leveraging that hype. The project presents itself as a privacy-first Ethereum Layer-2.

It claims to offer encrypted transaction execution, an encrypted mempool, and protection from MEV and front-running. The project positions itself as a solution to transaction surveillance on public blockchains.

So far, Shade Network has not launched a live network or token. Its visible progress remains limited to a waitlist, early branding materials, and high engagement on social media.

Update.

Some friction along the way. Privacy makes people uncomfortable. We expected resistance.

Full roadmap, plan, and team reveal coming soon.

Until then, join our official channel for updates: https://t.co/KMfUY7tetk

We’re not going anywhere.

— Shade Network (@Shade_L2) January 1, 2026

No testnet code, audits, or technical documentation have been publicly released.

Rug Pull Allegations and Red Flags

The main concern centers on alleged links between Shade Network promoters and a previous crypto project accused of conducting a rug pull after raising roughly $1.8 million.

Critics claim that participants in that earlier project lost funds through a malicious claim link that drained wallets.

In addition, multiple wallet providers reportedly flagged Shade Network’s website as potentially harmful.

Such warnings usually appear when phishing scripts or malicious contract interactions are detected. While false positives are possible, simultaneous flags across platforms significantly elevate risk.

Shade Network Rug Pull Suspicions 🧵

> New ETH L2 drops waitlist

> Says “privacy by default”

> Provides hidden txs and MEV protection

What they promise:

> Encrypted mempool

> Stealth addresses

> Protection from bots & frontrunning

Why people got excited:

> MEV extracted… pic.twitter.com/RnJHijuQRg

— Param (@Param_eth) January 1, 2026

Further scrutiny highlights the absence of standard disclosures. Shade Network has not published team identities, investor information, or a public GitHub repository.

Observers also note that key social media and Discord accounts were created recently, which contrasts with typical Layer-2 development timelines.

.@Shade_L2 building a privacy-focused l2, waitlist is live for testnet

but there’s nothing about the team or backers, x account was created a few weeks ago, team & mod accounts on
discord were also created recently

docs ssl were issued a few weeks ago, no github repo yet,… https://t.co/8Rx5eqNZzm pic.twitter.com/sgLOTLD8bv

— Naeven (@Naeven_) January 1, 2026

Adding to the scrutiny, several early promoters publicly withdrew support after conducting deeper reviews.

They cited recycled accounts, coordinated engagement, and security warnings as reasons for distancing themselves. These retractions intensified concerns rather than easing them.

Cant believe 15000 people joined the waitlist of @Shade_L2

TLDR: its a scam project

> past links to Omnera
> they raised $1.8m in ICO
> released a scam link for $OMN claim
> was malicious link and everyone got drained
> team deleted their @’s and flew away

Now those same guys… pic.twitter.com/JqM9vN0rXR

— manya (@manyaaww) January 1, 2026

Privacy infrastructure projects usually require years of research, cryptographic expertise, and transparent development. In Shade Network’s case, critics argue that narrative-driven hype has outpaced technical substance.

Until independent verification emerges, users should avoid wallet interactions and contract approvals related to the project.

The post Scam Allegations Surround New Privacy Layer-2 Project Shade Network appeared first on BeInCrypto.

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