The developments come after a tweet by cryptocurrency analyst CryptoWhale, who claimed that DeFi100 defrauded investors and ran away with $32 million of investor funds.
DeFi100, a decentralized finance protocol today, claimed that its website was the target of a coordinated hack after news reports surfaced that the project was a scam and the team behind the protocol had absconded with $32 million of investor funds.The Background
The incident was brought into focus by a tweet by a Twitter handle, “CryptoWhale,” that stated that DeFi100 had “scammed its users” and absconded with user funds worth millions. This comes after hackers allegedly defaced the DeFi100 website with a not-so-pleasant message for its users. The offending message has since been removed, with the DeFi100 team quickly announced that the website had been compromised.Warning Of More Such Projects
The Twitter user also warned investors and potential investors that many scam projects would exit the market over the next few months with the slowing of the bull market.
He ended the tweet with another warning for investors,
“Never invest in very new projects, with anonymous teams, made as memes, and have a lack of real utility. Stay safe, everyone!”DeFi100 Radio Silence
Apart from the message on Twitter stating that the project website was hacked, DeFi100 has not directly addressed the issue or commented on the incident on Twitter or any other platform. At the time of writing, DeFi100 has still not put out a statement on the incident.A “Rug Pull” Event
Some have speculated that what the crypto space saw with DeFi100 was a “Rug Pull.” This is an event that often occurs in the crypto space where developers of a project abandon it and disappear with investor funds.
This is why the saying “never invest more than what you can afford to lose” is popular in the crypto space. The native token of DeFi100, the D100, slipped 25% in valuation since the hacking news.Similar Incidents In April
The news about DeFi100 comes hot on the heels of two Turkish cryptocurrency exchanges allegedly involved in an exit scam. The first exchange, Thodex, saw Turkish authorities detain 62 people over accusations that the exchange defrauded its users of $2 billion worth of cryptocurrency.
According to Turkish news agency Anadolu, 78 people are involved in the exit scam, out of which 62 have been detained. Turkey’s financial crimes investigation board also froze Thodex’s bank accounts.
The second incident involved the cryptocurrency exchange Vedibitcoin. The exchange had its bank accounts frozen after suddenly announcing the ceasing of operations, rendering customers unable to access their funds.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.