Blockchain security firm PeckShield shared that it has detected “rug pulls” on seven IDO protocols. According to the statements made on Twitter during the day, GOTEM, ONEP, HBARP, MPLAY, ELIT, PEE and QDrop altcoin projects were hacked and approximately $2.6 million was withdrawn into Tornado Cash. Details cryptocoin.com‘in.
Funds are made untraceable in Tornado Cash (TORN)
A “rug pull” happens when developers withdraw money from investors and leave the project after a large sum has been allocated to the fake crypto or DeFi project. This phenomenon is particularly common on DeFi and DEX platforms. The PeckShieldAlert Twitter account shared the “rug pull” operations it detected in 7 IDO protocols in the tweet below. Accordingly, 5,744 WBNB Tornado Cash (TORN) worth $2.6 million stolen was sent to the transaction hider.
- It is familiar in the community of “rug pull” operations on altcoin projects. Because the analytics company Chainalysis reveals that the crime rates related only to cryptocurrencies peak in 2021, revealing a victimization of 14 billion dollars. This rate has increased by over 500% compared to 2020, reaching roughly $3.2 million. 72% of “rug pull” operations take place in altcoin projects that provide DeFi services.
Scammers exploit altcoin traders’ inexperience
chainalysisAccording to a report prepared by ‘s in December 2021, there are 10 billion dollars worth of crypto money on illegal websites. According to the company, the inexperience of many investors in decentralized exchanges (DEX) is seen as an opportunity by scammers. Apart from these, on December 29, Mark Cuban-backed altcoin project Polygon (MATIC) announced that a critical error in its contracts cost $ 1.6 million. However, the ethical hackers who identified the vulnerability and informed the project were rewarded with $3.46 million.
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