A decentralized exchange (DEX) built on Arbitrum (ARB) burned its investors and made off with $3 million worth of crypto, according to the blockchain security firm PeckShield.
Swaprum (SAPR) bills itself as “a next-generation decentralized exchange with a range of trading tools and potential earnings of up to 100% APY.”
PeckShield notes, however, that the DEX appears to have executed a rug pull scam this week, laundering 1,620 Ethereum (ETH) to the crypto mixer Tornado Cash and shutting down its social media accounts.
Meanwhile, blockchain security firm Beosin reveals that the deployer of the Swaprum smart contract added a backdoor function to loot liquidity pool tokens staked by users. According to Beosin, the deployer used the “add ( )” backdoor function to siphon crypto from the liquidity pool for their profit.
Rug pulls generally refer to events when developers promote a new cryptocurrency project to investors and sell affiliated tokens, then withdraw the funds raised during the token sales and disappear.
The total value locked (TVL) on Swaprum fell from $3.148 million on Thursday to just over $9,000 on Friday, according to the crypto tracker DeFi Llama.
The TVL of a blockchain represents the total capital held within its smart contracts. TVL is calculated by multiplying the amount of collateral locked into the network by the current value of the assets.
Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inboxCheck Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
Featured Image: Shutterstock/Sensvector
The post Arbitrum DEX Burns Investors With $3,000,000 Rug Pull Scam, According to Blockchain Security Firm appeared first on The Daily Hodl.
source https://dailyhodl.com/2023/05/20/arbitrum-dex-burns-investors-with-3000000-rug-pull-scam-according-to-blockchain-security-firm/