Polywhale Finance founders accused of rug pull amid abrupt shut down
The founders of the DeFi yield farm have allegedly redeemed over $1 million worth of tokens as the Treasury wallet was drained Monday. Developers of Polywhale Finance, a leading yield farm on the Polygon network, have abandoned the project in what appears to be an elaborate exit scam worth over $1 million, cryptocurrency news outlet Crypto Briefing reported Monday. Polywhale Finance's founders are being accused of pulling a “soft rug” exit scam by selling their tokens during the latest crypto market price collapse. In a Telegram group devoted to the project, Polywhale Finance cited poor....
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Developers dumping tokens and making off with the proceeds is the latest scourge to plague DeFi. The decentralized finance ecosystem has been plagued by a variety of known scams and exploits for some time, with yet another coming in the form of what is known as a “soft rug”.Those that have been dabbling in DeFi for some time will be familiar with the term “rug pull”. This generally refers to the abandoning of a project by insiders or developers who remove liquidity from pools or vaults on decentralized exchanges and disappear with the funds.A related malfeasance to plague the emerging....
“You can’t solicit funds for a business opportunity, abandon that business and abscond with money investors provided you,” stressed IRS-CI Special Agent-in-Charge Thomas Fattorusso. The Department of Justice (DOJ) has taken action against an alleged NFT rug pull, after it slapped the founders of the Frosties project with charges relating to fraud and money laundering. The two founders are accused of purposely concealing their identities to operate a rug pull on the Frosties community by failing to deliver on the project’s roadmap and “utility” which touted rewards for NFT hodlers,....
More than 70 websites promising unrealistically high returns on bitcoin investments have been shut down by the New York County District Attorney's office. As originally reported by Bloomberg News, 73 sites were taken offline on 16th January by the office, including BitcoinHYIP.org and others owned by a company called YouYou Finance. The defendants are accused of securities fraud and intent to commit fraud, as well as larceny charges, according to documents provided to CoinDesk. The investigator explained the background of his investigation into high-yield investment schemes based on....
A Twitter account has accused the Bulgarian co-founders of the Swiss-based cryptocurrency lender Nexo of misappropriating funds from a charity platform. The company has rejected the allegations in the anonymous attack, which comes after Nexo offered a buyout deal to troubled rival Celsius. Anonymous Allegations Against Co-Founders Circulated on Social Media A Twitter user going by the handle @otteroooo has drawn attention to media reports about misuse of donations to a charity allegedly linked to the people behind Nexo, a major provider of crypto-backed loans. In a thread published on....
Tatarstan’s highest court has rejected appeals against arrest warrants issued for three co-founders of the notorious Finiko crypto pyramid. The top representatives of the Ponzi scheme, accused of large-scale fraud in Russia, are still hiding abroad, media reports reveal.
Three Finiko Ponzi Scheme Members Still Wanted
The Supreme Court of Tatarstan, a republic of the Russian Federation, has confirmed the arrest warrants issued in absentia for Zygmunt Zygmuntovich and Marat and Edward Sabirov. The three wanted men are close associates of Finiko’s founder Kirill....