Luna Yield DeFi project developers stole about $8 million from investors

DeFi-protocol Luna Yield on the Solana blockchain abruptly ceased operations a few days after launch. The project\’s website and social media were shut down, and its developers withdrew about $8 million from the protocol.

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Ok… So I was going to attempt finishing the Serum library tests and stream it tonight but Luna Yield decided to rug pull and steal something like $~8M (can’t attest atm)

A THREAD to, hopefully, pill all of you degens on #Solana to pay attention to what you’re doing.

— hoakegani (@hoaktrades) August 20, 2021

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The Luna Yield team conducted an IDO on the SolPAD platform on Monday, August 16. By Friday, the platform said the project had shut down its social media and website, and anonymous developers had withdrawn all liquidity from the protocol.

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Luna Yield, the latest IDO on our Launchpad, seems to have some problems. The Luna Yield Team took down their website and all other social media. They also withdraw all liquidity. SolPAD still can’t reach Luna Yield Team to figure out what happened.

— SolPAD (@FinanceSolpad) August 19, 2021

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According to the blockchain explorer Solscan, assets in WBTC, WETH, USDT and LUNY (the native Luna Yield tokens) were sent to the Tornado Cash mixer address.

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SolPAD said it would compensate investors up to 60% of the funds lost in the incident. To that end, it uses assets from the Solpad Foundation\’s reserve fund. The funds will be credited to the addresses that directly participated in the IDO.

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We will sort out the list and directly distributed the compensation into the participant’s wallet (the same wallet that joined the IDO on August 16th. We will compensate users in USDC, with a value equal to 60% of the purchased amount.

— SolPAD (@FinanceSolpad) August 21, 2021

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SolPAD administration said that immediately after the incident they tried to track the developers\’ addresses and determine their IPs, but to no avail. The platform also provided all collected information to “centralized exchanges and regulated institutions” that could block transactions with stolen assets.

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In June, the team of the DeFi project WhaleFarm stole from investors $2,3 million.

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