Binance’s security team helped recover almost all the funds stolen from users in the wake of the recent exit scam by the creators of the automated market maker (AMM) Wine Swap. ForkLog was told this by exchange representatives.
The Wine Swap platform launched on Binance Smart Chain (BSC) on October 13. Just an hour after start-up, the project’s creators carried out an exit scam, siphoning off the cryptocurrencies invested by users amounting to about $345,000 (at the rate on November 2).
In total, affected investors sent 19 different tokens to 119 addresses. At the moment of the exit scam, the funds held on the smart contract 0xa1eaB5F255DD77fED0D8ea81748422ca7ab0eDc4 were sent by the attacker to the address 0x4BA023aA9196a354C008aD595F67e268420b7005.
Binance and the BSC developer community received notification of the incident, after which specialists were able to trace the flows of funds from Wine Swap. They included cross-chain exchanges between BSC and Binance Chain with subsequent transfers to Ethereum. A small portion of the funds ended up on two centralized exchanges, as well as on Binance Bridge, where they were frozen.
By that time, almost all the coins had been converted into stablecoins, as well as into BNB, ETH and LINK.
The Binance team conducted a transaction analysis and identified the addresses whose owners had fallen victim to the attacker, as well as determined the exact amounts that each of them had lost.
The next day, October 14, the attacker himself was identified, soon after which they reached out to him. According to exchange representatives, realizing they had been caught red-handed and to avoid unwanted consequences, the Wine Swap creators agreed to cooperate.
From that moment, the process of returning the stolen funds began — the attacker sent them directly to the exchange so that it could distribute them among the victims.
It is reported that the bulk of the funds has already been converted back into the original tokens. As of writing, the process of returning funds to affected users is ongoing and is expected to be completed in the coming days.
The launch of the Binance Smart Chain mainnet, which allows creating smart contracts and earning from staking the BNB token, took place in September this year.
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