The Swaprum DEX group vanished with $3 million during a stated exit fraud on the Arbitrum network
It seems that user funds were stolen from the decentralized Ethereum Layer 2 network Arbitrum exchange Swaprum.
On the Ethereum Layer 2 network Arbitrum, a decentralized exchange by the name of Swaprum seems to have completed an “exit scam” sometimes known as a “rug pull,” disappearing with an estimated $3 million in customer deposits.
PeckShield, a blockchain security company, conducted an on-chain investigation and estimated that $3 million, or 1,628 ETH, was stolen from the platform’s liquidity pools.
The Swaprum team removed the exchange’s ability to buy and sell the platform’s native coin. After that, it sold the tokens against ETH, which caused the value of swaprum (SAPR) tokens to fall and the remaining tokens owned by unknowing investors to become almost worthless.
Once on Ethereum, the money had already been moved from the Arbitrum network. Tornado Cash, a widely used Ethereum mixer service, was used to conceal the transaction trace and discourage authorities from tracking the stolen ether.
Swaprum’s social media profiles were removed overnight, including those on Twitter, Telegram, and GitHub, erasing practically all traces of the company online. The project’s official website, which acted as the protocol’s user interface is still up. The Block was unable to reach anybody involved in the project for a response.
Beosin’s security researchers uncovered a backdoor in the Swaprum smart contract. Beosin said, “The person who set up Swaprum used the add() backdoor function to steal LP tokens that users staked, then took liquidity out of the pool to make money.” The culprits were able to seize control of resources thanks to their harmful actions.
This exit fraud has recently reemerged in the Ethereum Layer 2 community. A similar situation occurred last month when the creators of a decentralized exchange called Merlin on the zkSync network vanished with roughly $2 million.