• Swaprum, an Arbitrum-based decentralized exchange (DEX), has allegedly conducted a rug-pull on its users, with $3 million worth of customer deposits being swiped from the platform.
• Following the incident, Swaprum’s Twitter, Telegram and GitHub accounts have all been deleted; however, Swaprum’s website is still operational at the time of writing.
• It was made possible due to the Swaprum developer team allegedly “upgrading the normal liquidity collateral reward contract to a contract containing backdoor functions.”
Swapmur Allegedly Conducts Rug Pull
Brian Quarmby May 20, 2023: A keyword search for “Swaprum” on Twitter yields several tweets from people calling out smart contract auditors CertiK, as the firm had conducted an audit of the platform as recently as May 5.
It has been reported that $3M worth of customer funds was swiped via alleged Swaprum DEX rug pull. Promptly after this incident happened, Swaprum’s Twitter, Telegram and GitHub accounts were all deleted; however, its website is still up.
How The Rug Pull Was Made Possible
The bad actors managed to swipe 1,628 Ether ETH $1,810 — worth roughly $2.95 million at current prices — from Swaprum’s liquidity pools and bridged it to Ethereum before laundering almost all of the funds through crypto mixer Tornado Cash. Furthermore, it has been mentioned by blockchain security firm Beosin thatthe “deployer of Swaprum used the add() backdoor function to steal LP [liquidity provider] tokens staked by users, then removed liquidity from the pool for profit.” This was made possible due to a contract containing backdoor functions that was upgraded by the Swapmur development team.
Smart Contract Auditors Called Out After Incident
A keyword search for “Swapmur” on Twitter yields several tweets from people calling out smart contract auditors CertiK for conducting an audit of the platform as recently as May 5th.
Total Views On Incident
Overall 8959 views and 28 shares were recorded since this incident occurred in regards to this news article.
Final Thoughts
This situation highlights how important it is for any project utilizing blockchain technology or services related to DeFi protocols or smart contracts should always be further audited or reviewed carefully by independent third parties prior being utilized .