TurtleDEX on BSC rug pulls worth $2.5M funds

Exit fraud with Binance Smart chain based exchange, worth $2.5M
  • TurtleDEX has laundered 9k BNB tokens worth $2.5 million in a rug pull event
  • The funds were raised to liquidate the exchange’s pool in a presale on 15th March
  • Although Binance will be working on tracing the hackers, there is little hope among users that the event would be just an experiment

TurtleDEX, a Binance Smart Chain-based decentralized crypto assets exchange, has reportedly been rug pulled. It is another exit fraud in the DeFi ecosystem which occurred on Friday. The decentralized exchange secretly pulled out the exchange pool’s liquidity and laundered the funds. Moreover, it was observed that the official website of the DEX is inaccessible, and the official Twitter handle is also observed deleted. It is known that around 9k BNB tokens worth approximately $2.5million were laundered.

How was TurtleDEX able to rug pull the funds?

TurtleDEX was recently launched on Binance Smart Chain’s blockchain (BSC). In a presale on 15th March, the DEX raised approximately 9000 Binance Coin (BNB) worth around $2.5 million. It was known that first, the exchange withdrew the funds from the trading pools on BSC-native decentralized exchanges like PanCake Swap and Ape Swap. This helped the exchange to convert the liquidity to Ethereum. According to the DEX transactions record, the laundered funds were first sent to Binance exchange wallets and then sold.

Will Binance continue to pursue the laundered funds?

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Observing the situation, @DeFiStalker on Twitter announced that both Ape Swap and Pancake Swap were removed. However, the Twitter user revealed the news after more than ten hours. Indeed, the rug pull event just occurred within 14-hours of the presale. However, the exchange used to deem that it’s impossible to rug pull as Turtles have small hands. 

Following the scenario, users were observed getting shocked by unexpected events. The users deemed that centralized exchanges are still having many upsides and requested Binance to help track down and freeze the hacker’s accounts. Following the users’ requests, Changpeng Zhao, the CEO of Binance, tweeted and calmed down the users by sharing that they helped chase a few funds back.

This isn’t the first time the DeFi ecosystem is witnessing such activities. Indeed, it has almost become common in the sector to face such events. However, there are hopes that the users will get their funds back. As Meerkat Finance rug pull, which was the largest rug pull scams ever, was done only to experiment and returned all the funds to its users.

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Ahtesham Anishttp://www.thecoinrepublic.com
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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