DeFi Platform Loses $3 Million in Cryptocurrency Collapse: Swaprum DEX Falls Victim to Rug Pull Scheme

Swaprum, a decentralized exchange (DEX) operating on Ethereum’s layer-2 network Arbitrum, has lost $3 million worth of ether tokens in what appears to be a rugpull exit scam. The platform offered farming rewards, low swapping fees, and up to 100% annual percentage yield (APY). Peckshield, a blockchain security firm, reported that around 1,628 ETH was drained from Swaprum’s liquidity pools in the late hours of Thursday. Beosin, another blockchain security platform, revealed that Swaprum’s developer had inserted a backdoor function into the smart contract, which allowed them to steal liquidity pool tokens staked by users, transferring the funds to cryptocurrency mixer Tornado Cash. As a result, the SAPR token, Swaprum’s native token, plunged 99%. Swaprum’s social media accounts on Twitter, GitHub, and Telegram have been deleted, and only the website remains active. This rugpull is one of the largest exit scams on the Arbitrum network, overthrowing that of DeFi protocol Hope Finance’s February exploit of $2 million.

J-S Tremblay
About the author - J-S Tremblay

I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...

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