The developers of SudoRare, a Non-Fungible Token (NFT) platform have gone missing with some cryptocurrency and stablecoins.
Ethereum (ETH), LooksRare (LOOKS), and USD Coin (USDC) tokens were all drained from the exchange. Following the attack, the LOOKS and USDC tokens were converted to ETH on the Uniswap decentralized crypto exchange. Altogether, the rug pull amounted to 519 Ethereum (ETH) which is currently worth $815,000.
At the moment, SudoRare has shut down its trading platform as well as all its social media handles. The decentralized non-fungible token (NFT) exchange platform became unavailable online barely six hours after it was launched.
To enumerate, a rug pull is a crypto scam strategy where developers attract investors into their digital assets project, then pull out once funds are injected. The investors are then left penniless or with a cryptocurrency that has no market value. The project is hardly even completed before the developers remove all its liquidity.
Precisely, the rug pull was perpetrated today and hijacked investors’ funds without leaving traces. From investigations, PeckShield discovered that the funds have been sent to three different wallet addresses. After much scrutiny, one of the wallets was discovered to belong to a Kraken user. Kraken is a United States cryptocurrency exchange which also doubles as a bank.
Suspicions Raised Concerning SudoRare Project
In the past week, prospective investors and the general public were warned by crypto Twitter against trading on the SudoRare protocol.
The suspicious whistleblowers had flagged the tokenomics behind the platform as well as the presence of fake online followers. Interestingly, retail users were offered an outrageous yield on investment. With this in mind, many felt that SudoRare was a scam scheme.
After much scrutiny and analysis, PeckShield and other commentators believe that the developers behind the project are responsible for the rug pull. Considering the short duration after it was launched, it is suspected that no one could have gotten access to the project’s liquidity pool.
Crypto investors have been warned to always carry out due diligence before plunging their capital into any crypto project. Only in 2021, $2.8 billion was hijacked via rug pull which amounted to over two-thirds of the total crypto scam last year. One of these is the $190 million breach of Nomad Network.