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On Tuesday, NFT marketplace SudoRare defrauded users of about $820,000 in various cryptocurrencies. SudoRare was only in operation for six hours – then those responsible pulled the plug, turned off the associated social media profiles and made off with the funds.
SudoRare gambles off $820,000
Before deleting the project’s online presence on Tuesday, the creators of the non-fungible token (NFT) platform Sudorare made off with the cryptocurrencies of their customers with a total value of $ 820,000.
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Sudorare is a fork of LooksRare (LOOKS), another decentralized NFT marketplace that pays users for using the service, and SudoSwap, a decentralized NFT Marketplace, which is known for its NFT liquidity pools and lower gas prices. Over the past year, both projects have gained popularity in the cryptocurrency community.
Users who used LOOKs, XMON and wETH for Sudorare’s own tokens over the course of a week gained access to a return farm.
Loud On-chain data the incident occurred early Tuesday – just six hours after SudoRare went live. The exchange should allow users to create liquidity pools for NFT-Build collections and earn fees by staking the project’s own token SR.
But shortly after the launch of the platform, the team threw in the towel. The platform’s website and Twitter account also disappeared shortly after.
“Rug pulls” are frauds in decentralized finance (DeFi), in which the developers seem to be working legitimately on a blockchain and then withdraw the liquidity pools from the project. As a result, they “pull the rug from under the feet” of investors, causing a dramatic decline in the tokens associated with it.
Allegations of fraud have been around for some time
Many in the crypto Twitter community were skeptical. For example, 2shabby already tweeted on Monday that SudoRare could be a scam:
“Don’t participate unless you want to take the risk of losing your money. This team is [anonym], will not reveal his identity, and the probability that it is a scam is high.“
🚨 WARNING THREAD 🚨
DON’T PARTICIPATE UNLESS YOU WANT TO TAKE THE RISK OF LOSING YOUR MONEY. THIS TEAM IS ANON, WON’T DOXX AND THE POSSIBILITY OF THIS BEING A SCAM IS HIGH.
Everything I share must be checked by yourself. I’m not giving financial advice or tell you to jump in. https://t.co/snrQnK6cYQ
– Shabby (@2shabby) August 22, 2022
Twitter user 0xstanec also showed a high level of distrust. Be Comment:
“This is like a 1,001% scam project that noobs fall for.“
A Twitter user named Adam, on the other hand, writes:
“Sudo rare is live, but people are betting on an upgradeable contract that indicates a split from Masterchef… I see no reason to need an upgradeable version of Masterchef, as it is already battle-tested… Stay on the safe side, it could be a scam.“
sudo rare is live but ppl staking into an upgradable contract that points to a fork of master chef.
Can’t see any reason to need an upgradeable version of Masterchef as it’s really battle tested already
stay safe as could be a scam.
– Adam (@surfcoderepeat) August 23, 2022
Data from the on-chain forensics platform PeckShield shows: the money has already been transferred to three different wallets.
PeckShield and other observers have suggested that the founders of the project are responsible for its demise. This is due to the fact that, given that the hack took place so soon after the launch, they were the only ones who were likely to have access to liquidity in the pool.
The company later announced that one of the crypto addresses belongs to a user who has an account with Kraken.
According to the “Know Your Customer” regulations, Kraken must verify the identity of each of its customers, as it is a regulated US exchange. This means that at least one person associated with the attack may have been familiar with the exchange.
Proof of text: Bitcoinist
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