The Developers of This DeFi Platform Disappeared with Hundreds of Thousands of Dollars!

BNB Chain and polygon DeFi platform, a yield aggregator based on Blur Finance (BLR) It looks like the developers behind it suddenly abandoned the project and deleted the project’s social media channels.

DeFi Platform Developers Flee, More Than $600,000 in Loss

Security firm PeckShield said on Wednesday that more than $600,000 worth of tokens disappeared in the process.

The protocol’s website displays an invalid certificate and the link to the Discord channel results in an “invalid invite” message.

This latest event is considered to be a literal “rug pull”. In “rug pull” scams, developers create a working decentralized finance (DeFi) application and advertise it on social media, increasing the popularity of the token. As a result, the token is listed on a decentralized exchange.

#PeckShieldAlert #rugpull Seems Blur Finance $BLR rugged $BLR has dropped -99%. https://t.co/phmi0OPIbphttps://t.co/qk5c0UF6fY
The social media channel deleted and ～$600k were taken on polygon and BNBChain.
Thanks @Adam0658 for the intel. pic.twitter.com/e1oHDKkDVa

— PeckShieldAlert (@PeckShieldAlert) August 10, 2022

After investors who want to make a profit buy the tokens, the developers close the shutters and disappear.

The liquidity provided by investors can reach millions of dollars. Last week, investors in the Polygon-based Web3 game Dragoma were exposed to a rug pull worth $3.5 million. An earlier report by Chainalysis estimated $2.8 billion worth of rug pulls occurred in 2021 alone.

Trackers indicate that Blur has more than 754 owners on BNB Chain. The project recently integrated with Polygon and as of last week claimed to have generated an annual return of around 4,000%. His contract was created on 7 July.

The project’s BLR token fell 99% after the rug pull, trading at $0.00064 at the time of this writing. The price peaked at $0.06 last week.

*Not investment advice.