Solana Based DeFi Protocol, Luna Yield, Goes Dark as Customers Fear An Exit Scam: Report
While the market appears to be rallying once more, this month hasn’t been all sunshine and rainbows for crypto platforms. In what is growing to be an alarming trend, it appears that a rug pull might have duped some crypto investors.
Nowhere to be Found
Earlier today, SolPad, an Initial Digital Offering (IDO) platform built on the Solana blockchain, confirmed that one of its platforms has gone completely dark. The platform, named Luna Yield, offers yield farming with vaults that are available on Solana (SOL), Polygon (MATIC), and the Binance Smart Chain.
In its tweet, SolPad explained that the platform appeared to have been witnessing problems. The service scrubbed its online presence, deleting its websites and social media channels. The website is still available on Google’s results page, but it can’t be reached.
Luna Yield was the second IDO to debut on SolPad, going live earlier this week. According to news sources, the platform had gotten $6.7 million in user funds and was building a relatively strong community. Now, it appears that all of those funds have been stolen.
According to an anonymous source, the platform’s founders reportedly took all of the SOL tokens in the platform and converted them to Ether. From there, they transferred the money to Tornado Cash – a decentralized, non-custodial privacy solution that’s built on the Ethereum blockchain. Put simply, those funds are gone and can’t be recovered.
Although the SolPad team has requested patience as they try to contact the Luna Yield developers. However, this situation already has the trappings of an exit scam – a case where a platform’s developers take off with investors’ funds. If indeed it is an exit scam, it would be a first on the Solana blockchain.
Criminal Activity Making a Comeback
The situation marks just the latest criminal event that will befall the crypto space in the past few weeks. Last week, cross-chain decentralized finance (DeFi) protocol Poly Network was hacked, with investors losing up to $610 million in digital assets. After multiple investigations, the hacker was said to have exploited a vulnerability between contact calls to conduct the hack.
Eventually, nearly all of the funds were restored after the hacker seemed to have grown a conscience.
Poly Network eventually claimed that the hack was filled with “white hat behavior” and even offered the hacker a job. They turned it down, along with the company’s $500,000 bounty.
While the industry was reeling from that, Liquid Global, a popular crypto exchange, was hit in a hack just yesterday. The Japanese exchange confirmed the hack on Twitter, noting that only its hot wallets had been affected.
Although Liquid has yet to confirm anything, news sources believe that the exchange lost about $80 million to the hack. There are also unconfirmed reports that the funds belonged to the Celsius Network, which integrated with Liquid in April to offer the latter’s customers a compounding return on their crypto purchases.
Efforts are being made to get the funds back, with fellow crypto exchange KuCoin blacklisting all addresses involved in the hack.