According to CertiK analysis, decentralized finance (DeFi) and altcoin platform Ordinals Finance has performed an exit scam. Protocol was accused of committing an “exit scam” that resulted in a loss of $1 million. Meanwhile, the protocol’s altcoin, OFI, has lost 95 percent. Here are the details…
Exit scam alarm sounded for altcoin project
CertiK, a blockchain security firm, reported the latest developments for Ordinals Finance. CertiK reports that the developer of the project has withdrawn a total of 269 million OFI tokens worth $1 million from its smart contracts using the “safuToken” and “ownerRewithdraw” functions. This caused OFI’s market cap to drop from $2.3 million to just over $143,000, with losses of over $2 million according to CoinGecko data.
We can confirm that the @ordinalsfinance exit scam has resulted in a loss of $1 million.
All social media accounts have been deleted as well as the project's website.
Funds have been consolidated into EOA 0x34e…25cCFhttps://t.co/0Pwlt3yibm https://t.co/RA7vSjNajI
— CertiK Alert (@CertiKAlert) April 24, 2023
Blockchain data showed that the Ordinals distributor account transferred 256 million OFI tokens along with 13 million OFIs to a separate Ethereum account through multiple transactions. The tokens were then deposited into Tornado Cash, a privacy-focused decentralized mixer. The social media accounts and websites of the project also disappeared. Further investigation revealed that the distributor account exchanged OFI for Ether in 12 separate transactions before transferring more than 85.5 ETH to the account ending in “cCF”. The SafuToken functionality is implemented on a contract labeled “OEB Staking”. He allowed the owner of the contract to transfer all staked tokens to himself.
Risks to the DeFi space remain
The alleged exit scam has raised concerns about the security and transparency of DeFi protocols. DeFi platforms are designed to work without intermediaries. But this also means they are more vulnerable to hacks and scams. The lack of regulation and oversight in the DeFi space also makes it easy for bad actors to commit fraudulent activities. As we have reported as Kriptokoin.com, CertiK is one of the few platforms that actively monitors the DeFi space.
The security firm has also developed a set of tools to help users evaluate the security of DeFi protocols. The Ordinals Finance exit scam highlights the importance of doing due diligence before investing in DeFi projects. Investors should research the background of developers and the security of protocols before committing their funds. They should also be aware of the risks involved in investing in DeFi and only invest as much as they can afford to lose.
IFO price collapsed
The Ordinals Finance project was launched as a state-of-the-art Blockchain-based protocol that allows users to lend and receive coins securely. However, the scam has raised questions about the credibility of the project and its developers. As a result, the Ordinals Finance exit scam resulted in a loss of $1 million. Meanwhile, the OFI token’s 24-hour chart points to a 95 percent collapse. The coin dropped from $0.002477 to $0.0000957.
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