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Arbitrum Project Swaprum Suffers Rug Pull, Token's Value Falls to Zero

Sat, 05/20/2023 - 14:26
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Tomiwabold Olajide
Swaprum (SAPR) dropped 100% in price following incident
Arbitrum Project Swaprum Suffers Rug Pull, Token's Value Falls to Zero
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Decentralized exchange (DEX) Swaprum, built on Arbitrum, has reportedly performed a rug pull, and nearly $3 million has been pilfered from the platform.

A rug pull in the crypto industry is when a development team suddenly abandons a project and sells or removes all its liquidity.

Wu Blockchain reports that the Swaprum ecological initiative of Arbitrum experienced a rug pull, which has caused the related SAPR token to plunge to near zero.

According to PeckShield, the scammers have already bridged over 1,628 ETH to Ethereum and laundered 1,620 ETH to Tornado Cash. The protocol was just announced as being audited by CertiK.

As the Swaprum SAPR token took a 100% nosedive in its price, Swaprum has already deleted its social accounts and groups. All Twitter, Telegram and GitHub accounts were deleted. Interestingly, its medium posts were likewise deleted, completely removing its social media presence.

Most likely, unsuspecting investors were drawn by the promise of high yields, with the platform promising as much as 100% APY.

Here's what happened

Hacken, a Web3 security editor, has taken to Twitter to highlight what happened in the most recent DeFi rug pull.

It highlights that Swaprum on Arbitrum was "rugged" by its founders for $3 million. How this happened was that the deployer of Swaprum utilized a backdoor function, add(), to steal LP tokens staked by users.

Following the theft, it notes that liquidity was swiftly stolen from the pool by the deployer. Then, the deployer of Swaprum transferred all the funds to the Ethereum network using cross-chain bridges such as Multichain, Across Protocol and Celer Network.

After successfully bridging 1,620 ETH through these platforms, he funneled it into TornadoCash. As a result of this rug pull, its native SAPR token plummeted by 100%. According to Hacken, the scammers managed to escape with approximately 1,628 ETH, equivalent to around $2.95 million.

In light of this recent incident, Hacken urges crypto users to stay vigilant and exercise caution while interacting with new DeFi projects.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.