Recently, a fraudulent project named “TurtleDex,” a decentralized protocol based on Blockchain Binance, pulled the rug from under its users’ legs.
The protocol depleted 9,000 BNB, which is approximately $ 2.5 million.
The protocol owners and those behind it immediately deleted the “TurtleDex” channel on Telegram and deleted the official account of the project on Twitter.
Rug pulling and theft of user funds are very common in the DeFi space.
Basically, the project team draws in users’ money and it disappears with it, which can no longer be seen anywhere.
A sad day for TTDX owners:
Jet Fuel Finance, a Yield farming protocol, had earlier confirmed a partnership with TurtleDex for the scam.
The Jet Fuel Finance account reported the transfer of liquidity pools on PancakeSwap and ApeSwap.
Both protocols lacked liquidity as users sold TTDX coins at levels close to zero.
The fraud happened after the expected launch yesterday.
After the money was stolen, the protocol traded cryptocurrencies in hot Binance wallets.
Now users of Binance are asking to freeze all wallets until they find their owners.
The incident caused major controversy in the DeFi space, raising concerns about the utility of contract audits.
TechRate, an analytics agency focused on blockchain-based platforms, revised the protocol.
Analysts did not find serious security issues, and the project was supposed to be secure.
The community was outraged when they learned of the review.
Now, users are asking Binance to send money to help affected users and to pressure them to freeze all wallets.
But Binance had not made any comments regarding this issue at the time of writing this article.
It is not the first and it will not be the last:
TurtleDex is not the first fraudulent project launched on the “Binance Smart Chain” blockchain.
A similar incident occurred on March 5, when Meerkat Finance stole more than $ 30 million in cryptocurrencies.
Meerkat took in $ 13.96 million in BUSD and over 73,000 BNB.
The project and “TurtleDex” shut down the official website and deleted all communication channels after users’ funds were stolen.