• Arbitrum-based decentralized exchange (DEX) Swaprum has allegedly conducted a rug-pull on its users, with $3 million worth of customer deposits being swiped from the platform.
• A rug pull or exit scam occurs when a seemingly legitimate project gathers investment or user deposits before promptly shutting everything down, pulling the capital and vanishing — if they adequately cover their tracks.
• Following the incident, Swaprum’s Twitter, Telegram and GitHub accounts have all been deleted; however, Swaprum’s website is still operational at the time of writing.
Suspected Rug Pull on Swaprum DEX
On May 20th 2023, it was reported that $3M worth of customer funds were swiped via an alleged rug pull on the Arbitrum-based decentralized exchange (DEX), Swaprum.
What is a Rug Pull?
A rug pull is an exit scam where a seemingly legitimate project gathers user investments or deposits and then abruptly shuts down all operations while simultaneously withdrawing all capital without leaving any trace. It is essentially stealing from unsuspecting investors who didn’t know better.
Swaprum’s Social Media Accounts Deleted
Shortly after the funds went missing, all of Swaprum’s social media accounts including Twitter, Telegram and GitHub were deleted; however its website is still active to this day.
Complaints Directed at Smart Contract Auditors
People have directed some complaints towards CertiK – a smart contract auditor who had audited Swapum as recent as May 5th – for failing to detect any suspicious activity in their audit report.
Backdoor Function Used for Theft
Beosin Alert stated that a backdoor function called add() was used to steal liquidity provider tokens staked by users and then removing liquidity from these pools for profit.