$3M worth of customer funds swiped via alleged Swaprum DEX rug pull

cointelegraph.com:

Arbitrum-based decentralized exchange (DEX) Swaprum has allegedly conducted a rug-pull on its users, with $3 million worth of customer deposits being swiped from the platform.

A rug-pull or exit scam occurs when a seemingly legitimate project ropes in a certain amount of investment or user deposits before promptly shutting everything down, pulling the capital and vanishing off into the distance — if they don’t adequately cover their tracks, of course.

According to May 19 tweet from the alerts-focused account of blockchain security firm Peck Shield, the bad actors swiped 1,628 Ether (ETH) — worth roughly $2.95 million at current prices — from Swaprum’s liquidity pools, bridged it to Ethereum, and then “laundered” almost all of those funds through crypto mixer Tornado Cash.

#PeckShieldAler #rugpull @Swaprum on #Arbitrum rugged ~$3M, $SAPR has dropped -100%. @Swaprum already deleted its social accounts/groups. The scammers have bridged ~1,628 $ETH to #Ethereum and laundered 1,620 $ETH to Tornado Cashhttps://t.co/tUNgbwGQCd pic.twitter.com/UH8V9RyFHy

Following the incident, Swaprum’s Twitter, Telegram and Github accounts have all been deleted, however Swaprum’s website is still operational at the time of writing.

Adding extra context to the incident, fellow blockchain security firm Beosin claimed that the “deployer of Swaprum used the add() backdoor function to steal LP [liquidity provider] tokens staked by users, then removed liquidity from the pool for profit.”

This was apparently made possible due to the Swaprum developer team allegedly “upgrading the normal liquidity collateral reward contract to a contract containing backdoor functions.”

3/ The backdoor function add() will transfer LP tokens from the contract to the _devadd