Companies DeFi Editor's Picks News

Safereum Scam: How a DeFi Project Pulled the Rug on Its Investors

Safereum Scam: How a DeFi Project Pulled the Rug on Its Investors

Safereum, a crypto project that claimed to be a meme-based and security-focused platform, has been exposed as a scam after its developers allegedly drained over $1.2 million from users in a “rug pull” exit scam.

A rug pull is a type of fraud where the developers of a project suddenly sell off large amounts of their tokens, causing the price to crash and leaving investors with worthless coins.

Project’s Devs Dumped Their Tokens on the Market and Disappeared

According to blockchain security firm CertiK, the Safereum developers unlocked and dumped over 600 Ether (ETH) worth of SAFEREUM tokens, which came partly from a recent $600,000 fundraising event for a related token.

The massive sell-off caused the price of SAFEREUM to plummet over 90%, from $0.000014 to $0.00000081. The official Safereum Twitter account and Telegram channel were also deleted after the incident.

Safereum Scam: How a DeFi Project Pulled the Rug on Its Investors

A few hours after the conclusion of a fundraising event for Safepad, a token associated with Safereum, which successfully raised $600,000 from participants, questionable transactions were observed. The sudden removal of liquidity coupled with the vanishing of its social media footprint strongly suggests that the developers may have executed an exit scam.

Safereum had been promoted extensively on social media by several crypto influencers, who apparently failed to conduct proper due diligence on the project. Some of these influencers have been accused of being involved in the scam or receiving payments from the developers.

The Safereum scam is one of the many examples of fraudulent activities in the decentralized finance (DeFi) space, where users are often lured by high returns and low barriers to entry. However, many DeFi projects have anonymous teams and lack proper audits or regulations, making them vulnerable to hacks, exploits, and scams.

Users are advised to exercise extreme caution when dealing with newer DeFi projects and to do their own research before investing. Regulators may also need to pay closer attention to these apparent scams that target uninformed retail investors. For now, Safereum users have little alternative to salvage their lost funds.

Related posts

XRP, BCH, LTC: technical analysis and course forecast for February 8-9, 2019

alfonso

The government again rejected the bill, which introduces the concept of digital rights

alfonso

Nike Has Generated $185M in Revenue from NFT Sales

Jai Hamid