Swapram Dex Plunges Into $3M Crypto Ragpull

Developers of decentralized exchange (DEX) Swaprum have pulled $3 million in ether (ETH) tokens from the protocol in an apparent ragpull, otherwise known as an exit scam.

The exchange, launched on the Ethereum Layer-2 network Arbitrum, offers high farm rewards, low swapping fees and earning potential of up to 100% Annual Percentage Yield (APY).

Swapram Ragpulse User for $3M

blockchain security firm peckshield have been marked Friday’s incident shows that approximately 1,628 ETH, worth about $3 million, was removed from Swaprum’s liquidity pool. onchain statistics This shows that the exit scam was executed late on Thursday night.

team first removed Liquidity provided for SAPR, the platform’s native token, on the exchange and sold assets for ETH. The funds were later moved from Arbitrum to Ethereum and then to cryptocurrency mixer Tornado Cash.

In-depth analysis by blockchain security platform Beosin revealed that the deployer of the Swaprum smart contract has added a backdoor function to enable the theft of Liquidity Pool tokens staked by users. Deployer used the add() function to empty the pool to his advantage.

Beosin further explained that the Swaprum team had upgraded the Normal Liquidity Collateralized Rewards contract to another with backdoor functionality.

“The backdoor function add() will transfer LP tokens from the contract to the _devadd address. By querying the _devadd address, it will return the ‘Swaprum:Deployer’ address. Swaprum: Use of LP tokens stolen in the previous step to remove deployer liquidity.” does,” the security forum said.

SAPR token plunged 99%

As a result of the ragpull, the SAPR lost almost all of its value. At the time of writing, the coin was trading at $0.000022 with a 24-hour trading volume of $83, according to data from CoinMarketCap, representing a 99% drop from its previous price of $0.147 before the ragpull.

Apart from this, Swapram’s social media accounts on Twitter, GitHub and Telegram have also been deleted. At press time only the platform’s website was active.

Meanwhile, Swapram’s Ragpool is one of the biggest exit scams on the Arbitrum network. The incident befell DeFi protocol Hope Finance, which was exploited for $2 million in February after a Nigerian hacker deployed a fake router on the platform.