Arbitrum DEX Burns Investors With $3,000,000 Rug Pull Scam, According to Blockchain Security Firm

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 rug pull scam this week, laundering 1,620 Ethereum (ETH) to the crypto mixer Tornado Cash and shutting down its social media accounts.

Source: PeckShield/Twitter

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.

Source: Beosin/Twitter

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.

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