The $3 million in customer deposits are said to have been stolen from the platform of Swaprum, a decentralized exchange (DEX) based on Arbitrum.
3 Million Dollar Rug Pull Allegation for Swaprum!
Rug pulls, also known as exit scams, happen when an apparently genuine enterprise collects investor or user deposits before abruptly ceasing operations, withdrawing the funds, and disappearing. Immediately after the funds vanished, the platform deactivated its accounts on Twitter, Telegram, and GitHub. In fact, while the website was up and running in the morning hours, at the time of this writing, the website was also inaccessible.
About Stolen Funds
The criminals stole 1,628 Ether, which is currently worth approximately $2.95 million at today’s prices, from the platform’s liquidity pools, bridged it to Ethereum, and laundered nearly all of the money through cryptocurrency mixer Tornado Cash, according to a tweet from the alerts-focused Twitter account of blockchain security company PeckShield on May 19.
A different blockchain security company, Beosin, reported that the “deployer of Swaprum used the add() backdoor function to steal LP [liquidity provider] tokens staked by users, then removed liquidity from the pool for profit.” This information provided additional context for the occurrence.
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