Swaprum DEX team suspected of $3m exit scam

The developers of the decentralized exchange Swaprum built on the L2-network Arbitrum allegedly absconded with roughly $3 million in cryptocurrency, PeckShield researchers found.

#PeckShieldAler #rugpull @Swaprum on #Arbitrum rugged ~$3M, $SAPR has dropped -100%. @Swaprum already deleted its social accounts/groups.
The scammers have bridged ~1,628 $ETH to #Ethereum and laundered 1,620 $ETH to Tornado Cashhttps://t.co/tUNgbwGQCd pic.twitter.com/UH8V9RyFHy

— PeckShieldAlert (@PeckShieldAlert) May 19, 2023

The team drained all liquidity from the pools in ETH, and sold their own SAPR tokens for ETH. The asset’s price collapsed to zero.

Accounts of the exchange on Twitter, Telegram and GitHub have been deleted.

The actions of Swaprum’s developers fit the classic exit-scam scheme, which in the DeFi sector is usually called rug pull.

Assets totaling 1,628 ETH were moved to the Ethereum mainnet and laundered through the mixer Tornado Cash.

Beosin researchers found a backdoor in the platform’s code. A function inserted into the standard contract for rewarding liquidity providers allowed withdrawing all funds from the pool to a specified address.

Swaprum on Arbitrum rugged for ~$3M.

The deployer of Swaprum used the add() backdoor function to steal LP tokens staked by users, then removed liquidity from the pool for profit.

One tx:https://t.co/qRXLhrAIqp pic.twitter.com/xf7vrciajN

— Beosin Alert (@BeosinAlert) May 19, 2023

In April alone, cryptocurrency projects lost $103.7 million due to exploits, hacks and frauds, according to CertiK. Since the start of the year losses have amounted to $429.7 million.