Swaprum DEX Drained in $3M Crypto Rugpull.

Swaprum, an arbitral-based decentralized exchange (DEX), allegedly performed a rug-pull on its users, stealing $3 million in consumer money.

A rug-pulling or exit scam occurs when a simple project collects investment or user contributions before abruptly shutting everything down, withdrawing the funds, and disappearing – providing they conceal their tracks effectively.

What does Peckshield’s Alert say about how many ETH from Swaprum’s liquidity pools?

According to a May 19 tweet from blockchain security firm PeckShield’s alerts-focused account, the bad actors stole 1,628 Ether ETH, roughly $2.95 million at current prices from Swaprum’s liquidity pools, bridged it to Ethereum, and “laundered” almost all of the funds through crypto mixer Tornado Cash.

 

The hack of Swaprum’s accounts:

Swaprum Dex Twitter, Telegram, and GitHub accounts were all deleted due to the incident; however, Swaprum’s website is still operating at the time of writing.

What Beosin Tweeet say?

According to Beosin, a fellow blockchain security firm, the “deployer of Swaprum used the add backdoor function to steal Liquidity provider (LP) tokens staked by users, then removed liquidity from the pool for profit.”

This was purportedly made feasible by the Swaprum developer team “upgrading the normal liquidity collateral reward contract to a contract containing backdoor functions.”

CertiK’s audit on the Swaprum website:

A Twitter search for “Swaprum” produces multiple messages from users praising smart contract auditors CertiK, which audited the platform as recently as May 5.

Their allegations effectively claim that CertiK approved the platform by auditing it and that the “audited by CertiK” branding remains on the Swaprum website.

CertiK, on the other hand, “conducts security assessments on the provided source code exclusively” and cannot guarantee that its suggestions are implemented. CertiK identified a “major” concern with Swaprum’s centralized nature during the examination. The backdoor-related improvements to the project’s intelligent contracts occurred after the audit.



CertiK’s website has now flagged Swaprum as an “exit scam.”:

As of present, CertiK’s website has labeled Swaprum as an “exit scam.”

 

Conclusion:

The incident sparked investigations and discussions within the cryptocurrency community to identify the guilty parties and put safeguards in place to prevent similar incidents. However, it also emphasizes the significance of doing extensive due diligence and exercising prudence when using decentralized platforms.

As investors and authorities deal with the fallout from this sad situation, it serves as a cautionary tale and a reminder of the importance of enhanced attention and transparency in the quickly growing realm of decentralized finance.