As CryptoSlate reported, there were three “carpet pulls” or scams in the Ethereum DeFi area on Friday, which meant losses of USD 1.2 million for unfortunate investors.
Taking advantage of the recent risk behavior of most crypto investors, seemingly separate malicious individuals / groups carried out three separate exit scams that affected hundreds.
In the scams, individuals carried out “pre-sales” on their projects where Ethereum was raised by willing investors. Then when the time came for the projects to release the coins that had been pre-purchased, the money was transferred to an external wallet and sold.
The projects that did this on Friday alone were DeFiB, iBase / YFFS, and DeTrade Fund. Countless other projects have done something similar in the past few months.
Fortunately, the investors affected by members of the community and by these scams forced the operators behind two of the scams to return the stolen capital.
DeTrade Fund and DeFiB operators are giving back some of the stolen Ethereum
The DeTrade Fund was by far the biggest scam on Friday. DeTrade Fund promised to be a platform where any user can make a profit by bringing capital into the company’s arbitrage system.
The operators of the scam stole over 1,400 Ethereum that were pre-collected, and prominent cryptocurrency investors and traders have spent nearly $ 1,000,000.
It comes as no surprise, then, that hackers hopped on their tails when the DeTrade Fund operators started running.
A Twitter user named “Artura $” along with others stated on other forums that the real operators of the DeTrade Fund were Lithuanians and found other incriminating evidence likely to lead to the arrest of the scammers.
$ DTF #scam #rugpull #criminals
Message to DTF scammers. You have 24 hours to reimburse all ETH pre-sale participants. If not, you will be reported to law enforcement agencies. I have information about you, starting with you being a Lithuanian. You have 24 hours!
– Artura $ (@ArturiQo) December 12, 2020
The tactic worked: shortly after Artura’s tweet, the addresses associated with the scammer distributed hundreds of Ethereum to attendees prior to the sale.
According to reports, around 65 to 70 percent of all funds originally stolen were given to those who bought them. The rest of the funds were reportedly shuffled through Tornado Cash and have yet to be returned.
Similar tactics have been used to force the scammers behind DeFiB, an Ethereum-based rebasing coin that has stolen hundreds of thousands, into a “partial refund.”
However, the Ethereum involved in iBase / YFFS, worth hundreds of thousands of dollars, is still at large. However, given recent efforts to track down those involved in the two aforementioned scams, it may only be a matter of time before these funds are returned as well.
As this thread from crypto trader “Fonship” points out, the above three are the latest in a long line of “carpet pulls” traders have seen this year.
Investors should keep their heads up and only invest in new projects that they really lose.
What is the largest amount of ETH dollars you lost on a single carpet move in 2020?
I lost 20 ETH in BetHero
– Fonship is a joke (@fonship) December 10, 2020
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