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SudoRare shuts shop, makes off with 519 ETH

This is the latest rug pull, a scam where developers abandon a project and leave with investors’ funds.

August 23, 2022 / 05:45 PM IST

SudoRare, an automated-market maker protocol, shut its services and social media accounts and made away with 519 Ether (ETH) worth about $815,000, according to blockchain investigator Peckshield.

A member of the crypto community was the first to draw attention to a suspicious transaction that used LooksRare (LOOKS) and USD Coin (USDC) tokens to siphon a sizable amount of money from SudoRare.

Peckshield then put out an alert about the rug pull of 519 ETH and the diversion of the stolen funds to three new addresses. SudoRare also deleted its social media accounts and all of its services.

Anndy Lian, chief digital advisor for the Mongolian Productivity Organization, said the incident once again highlighted the need for investors to do their own research before making investments in shady projects.

“The SudoRare team is fully anonymous and not doxxed anywhere. This is what I had warned my community on August 18, 2022, when they came to me about investing in them,” he said.

He said this was not a one-off case. In the Frosties freeze rug pull on January 9, hackers netted 335 ETH. On January 12, Big Daddy Ape Club took about the same amount at 9,136 Solana (SOL) for NFTs that did not even exist.

Evil Ape duped the Evolved Apes NFT community in October 2021 and managed to rug pull 798 ETH from investors one week after the collection’s launch. Their social media and website were also gone almost immediately.

Crypto scams

Over $7 billion was stolen in cryptocurrency scams in 2021, according to a report from Chainalysis. This represents an 81 percent rise from figures in 2020.

According to the report, rug pulls, a type of scam where developers abandon a project and leave with investors’ funds, became the “go-to scam” of the decentralised finance, or DeFi, ecosystem.

In 2021, rug pulls accounted for over $2.8 billion stolen, or 37 percent of all cryptocurrency scam revenue. This is a significant increase compared to 1 percent in 2020.

Murtuza Merchant is a senior journalist and an avid follower of blockchain and cryptocurrencies.
first published: Aug 23, 2022 05:45 pm