Ethereum investors and community members tracked down scammers

  • The Ethereum community and the affected investors traced the DeFi scammers
  • Two scammed projects operators have returned most of the funds
  • Considering the strategy, it seems like soon the leftover funds will also get back to their owners

On Friday, the Ethereum DeFi sector faced three rug pulls or scam losses worth $1.2 million. It is found that separate malicious individuals have conducted the three exit scams, which affected several investors. The three projects in which the investors had invested their funds went to an external Ethereum wallet and sold. However, after the scam today, the scammers distributed hundreds of sold tokens.

How the scammers got traced by the investors?

After the Ethereum project scam of Friday, it was found that the projects that did such activities were DeFiB, iBase/YFFS, and DeTrade Fund. Simultaneously, over the period of the last few months, it is also observed that several other DeFi projects have done the same activity. However, the community members and investors who got affected by the scams did some deeper investigations. Indeed, the investigation forced the two of the scammer’s projects to return the investor’s capital funds.

Two projects operators returned some of the stolen coins

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DeTrade promised its users to earn a profit from its platform by contributing capital. The projects wanted its users to invest their capital in the project’s arbitrage system. It was observed that the operators of the scam had stolen more than 1,400 ETH. However, it was clear that after the project began to run, the hackers got active.

A crypto enthusiast used a tactic to get refunds

A crypto enthusiast, namely on Twitter as “Artura$,” tweeted mentioning the scammers and warned them to return all the presale participant’s Ethereum funds. He also threatened the scammer operators that if they don’t refund the fund of presale participants, then he will report to the law enforcement institutions. Indeed, the crypto enthusiast has information about the scammers, so he also revealed that they were Lithuanians. Interestingly the strategy worked, and the scammer’s affiliated addresses distributed around 65% to 70% Ethereum tokens back to the participants. However, the leftover funds got mixed with the Tornado Cash, though still to be refunded.

However, hundreds of thousands of USD worth of ETH tokens are still involved in iBase/YFFS. If we consider the current strategy to track the involved individuals or groups in the two scams, it seems like those leftover funds will also get refunded in a matter of time.

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Ahtesham Anis
Ahtesham Anis is a Computer Science undergrad student currently based out of India. Coming from the business background and his keen interest in Cryptocurrency and Blockchain technology is what Ahtesham brings to the table. He is always an eager learner when it comes to exploring the new technologies and topics in the crypto world.

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