Sunday, June 4, 2023

SAPR after theft of $3M from Swapram Developers

$3 million stolen from Swapram Developers

Despite its anonymous nature, cryptocurrencies adhere to the principles of transparency and trust. However, exit scams and hacks have been long-term challenges in this sector. The recent incidents at Swapram have reminded market players of the threats posed by scammers and hackers.

This comes after Swaprum users discovered that the decentralized exchange’s team executed a carpet swap, removing around $3 million worth of ETH from the protocol. Swapram is a DEX on the Arbitrum platform. The DEX provided its users with substantially high farming rewards, the ability to earn up to 100% APY, and low trading fees.

About robbery

The scam was discovered on Friday by blockchain security company PeckShield. The security firm saw the withdrawal of approximately 1628 ETH (approximately $3 million USD) from the DEX (Swaprum) liquidity pool. Additionally, on-chain data shows that the Swaprum team organized an exit on Thursday.

Initially, the developers of Swapram removed the liquidity of the SAPR token from the DEX and sold the token for more Ethereum assets. SAPR is the base currency of Swapram. The team then took the money in Ethereum (from Aribrum) before sending it to Tornado Cash, a crypto mixer.

Furthermore, Beosin’s analysis indicated that the Swaprum smart contract developer launched a backdoor feature for contracts. This allowed developers to steal assets from the liquidity pool that investors bet on. Beosin said the developers added () functionality and emptied the platform.

Additionally, the Swapram team removed all of their Internet footprints, deleting all of their profiles on social media platforms including Telegram, GitHub, and Twitter. However, the project’s own official website is still up and running. Additionally, the now-defunct DEX disclosed a positive security audit from CertiK. No one knows whether the Authority is genuine or not.

SARP token useless

The rig pull saw the DEX’s native token SAPR lose massively. As I was posting this blog, the token was trading at $0.00022 US cents, with a trading volume of $83. SAPR has lost 99% of its previous pull price at $0.147 MAT. The Swaprum exit scam became the biggest robbery ever on the Arbitrum platform, taking in a profit of $2 million, dwarfing the losses incurred during the Hope Finance hack in February.

Nation World News Desk
Nation World News Desk
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