Cryptocurrency investors allegedly defrauded of $32m, DeFi100 denies rug pulling

Cryptocurrency investors have reportedly been defrauded after a scam alert was published on crypto firm, DeFi100.

The alleged fraud happened amid the market’s bearish run.

DeFi100, built on the Binance Smart Chain, is a decentralized finance protocol. On the company’s website, investors were told they have been scammed and nothing can be done about it.

“We scammed you guys, and you can’t do shit about it” was displayed on DeFi100.org website. According to Crypto Whale, about $32 million was lost by investors.

Crypto Whale stated that, “As the bull market fades, many projects will too! Expect a huge increase in exit scams over these next few months.

“Never invest in projects that are very new, with anonymous teams, made as memes, and have a lack of real utility. Stay safe everyone!” Crypto Whale wrote in a Twitter post.

Read also: U.S releases new cryptocurrency regulation amid CBN suppression

Hours after, the scam alert was brought down by DeFi100.org, with another message displaying “404 sorry”, which is an error message for a website or post taken down.

In a damage control tweet, DeFi100 stated that it was hacked, “The website was hacked yesterday and the message was shown by the hackers. It has been taken down.”

The initial message displayed on DeFi’s website had indicated a ‘rug pull’, which is common in the cryptocurrency market. Rug pull is a scam move which involves crypto developers tricking individuals to invest into their digital assets, then run away with investors’ funds.

By Fakoyejo Ayodeji…

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now