TurtleDex, a decentralized finance project powered by Binance Smart Chain, closed days after the presale, embezzling 9,000 BNB worth $ 2.5 million.
TurtleDex was a decentralized platform for storing user data and files. On March 15, the organizers of the project held a preliminary sale of TTDX tokens, collecting 9,000 BNB worth $ 2.5 million in just two hours, after which they decided to close the project and hide with the collected funds.
Twitter user under the pseudonym DefiStalker “sounded the alarm”, discoveringthat assets from the TurtleDex liquidity pool were moved to the Pancake Swap and Ape Swap decentralized exchanges. The funds were converted to ETH and then sent to nine addresses on the Binance exchange. The TurtleDex website was closed and all of the project’s social media pages were also removed.
The Jet Fuel Finance platform, which interacted with TurtleDex, confirmed the fact of fraud on the part of this service. DefiStalker wrote that TechRate had previously audited the project and did not identify any serious security problems. This sparked a wave of criticism among investors, who began to doubt the need for such checks if startup executives can smoothly withdraw liquidity.
Previously, potential investors have already asked the TurtleDex team about the risks of losing funds and the possible “failure” of the project. Its organizers jokingly replied that “this is out of the question, since the turtle’s legs are too short for this.” Beijing-based journalist Colin Wu said some defrauded investors were hoping to get their money back and asked Binance CEO Changpeng Zhao to block the stolen funds.
Recall that at the beginning of the month, another project that worked on the Binance Smart Chain blockchain, Meerkat Finance, stopped working. The project closed just a day after launch, and users lost about 13 million BUSD and 73,000 BNB for a total of $ 31 million.
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