Hope Finance Appears Rug Pull, Scammers Transferred $1.86 Million ETH To Tornado Cash

Key Points:

• A hacker who made off with everything from the genesis protocol cost Hope Finance almost $2 million in cryptocurrency holdings.
• The abused smart contract was different from the one that Cognitos reviewed for Hope, according to a Cognitos spokeswoman.
• Some crypto community members have claimed that the protocol was a rug pull.

Hope Finance, a decentralized finance (DeFi) protocol, lost about $2 million in cryptocurrency assets on February 20 to a hacker who also claimed ownership of the whole genesis protocol.

According to the DeFi protocol, Ugwoke Pascal Chukwuebuka, a Nigerian, was the hacker who defrauded the community while publishing a photo of himself holding a voter’s card.

Some in the crypto community have claimed that Hope Finance was a rug pull.

According to monitoring by AegisWeb3, a rug pull occurred in Hope Finance. The scammers have transferred ETH to the Ethereum blockchain through Celer and Uniswap and used 3 addresses to transfer 1095 ETH (approximately $1.86 million) to Tornado Cash.

According to a representative from its auditor Cognitos, the malevolent player used a different smart contract from the one Hope Finance had examined.

Cognitos said that Hope Finance hired it to evaluate the smart contract code and conduct a security assessment.

The Hope Finance team made several changes to the contract, but each one was rechecked by its engineer, the Cognitos spokesman continued. Moreover, Cognitos stated that the team’s point of contact with Hope Finance “had deactivated his account.”

Markuu, a DeFi enthusiast, said it is possible that the doxing* scammer is not taking people’s money because there are paid services that allow people to dox themselves.

*Doxing is a form of online intimidation using personal information, speech, or other confidential and sensitive information to harass, blackmail or other threatening behavior against the victim.

Hope Finance is a decentralized financial payment network that rebuilds the traditional payment stack on the blockchain. It utilizes a basket of fiat-pegged stablecoins, algorithmically stabilized by its reserve currency HOPE, to facilitate programmable payments and open financial infrastructure development. As of December 2020, the network has transacted an estimated $299 billion for over 2 million users.

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