Organisers of DeFi project vanish with $20m of users’ funds

The DeFi liquidity-mining pool project Yfdexf.Finance carried out an exit scam after investors blocked $20m of assets in its protocol, according to ZyCrypto

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Yfdexf carried out an energetic two-day campaign across various platforms, including Twitter and Telegram, promising prize draws for retweets and hashtags.

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After the exit scam, the project’s website went offline. Social media accounts used to attract investors have been deleted. Yfdexf did not fulfil promises to pay for promotional campaigns.

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Another day, another DeFi scam!

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After promoting themselves on Twitter for 2 whole days, Yfdexf has taken a total of $20M of Investors funds in their recent exit scam.

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99.99% of DeFi Tokens are scams, and will go this route. Please be very careful if you are heavily Invested. pic.twitter.com/WEkg7Sqo9i

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— CryptoWhale (@CryptoWhale) September 9, 2020

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“99.99% of DeFi tokens are scams, and they will go down this path. Please be very careful if you have invested large sums,” commented the trader and entrepreneur known as CryptoWhale.

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Earlier, analytics firm SlowMist reported a suspected $2.5m exit scam in the EOS-based DeFi project EMD.

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In a similar fraud, users suspected the anonymous administrator of the SushiSwap protocol ‘Chef Nomi’ after sale of half the assets from the developers’ fund worth $27m.

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Nomi transferred control of the DeFi platform to FTX exchange CEO Sam Bankman-Fried. Bankman-Fried’s team launched the previously planned migration of liquidity pools from the leading DEX Uniswap. As a result, the amount of assets locked in SushiSwap exceeded $1.3bn, while Uniswap’s figure plunged below $350m.

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