The developers at Polywhale Finance, a leading profitable farm on the Polygon Network, abandoned the project on charges of more than $ 1 million worth of complex fraud.

The founders of Polywhale Finance are accused of dragging the project down by dumping their tokens during the recent crypto market price crash. In a Telegram group dedicated to the project, Polywhale Finance named token sales as bad tokenomics, negative market outlook and competition. However, community members have hinted that the hasty exit was malicious.

The official Polywhale Finance Telegram group has been permanently closed and community members are increasingly believing the project is a scam. Disgruntled community members have since created a new Telegram group called “Polywhale Rugged,” where the pinned message is:

“NOTE: The treasury wallet was almost completely pulled into the developer wallet and then 1.04 million flew from there.”

The Treasury Wallet had 5 million tokens on June 9, according to a member dubbed “Exceptional”. A community member “SK” had previously observed that the treasury wallet had dropped to just 1.6 million. He was then banned from the chat room and his post was deleted.

“As of 12 noon UTC, this wallet currently has ~ $ 200,000, with 1.4 million going into the developer wallet around 16:55 UTC.”.

“They withdrew money five days ago while they are still promoting that they will add new features for developers. Shutting down isn’t easy, it’s an exit scam, ”another community member let me know.

Polywhale was launched by an anonymous team in April 2021. It acts as a profitable farming operation giving its users the opportunity to make extremely high profits with their deposited funds.

Users can wager various tokens including Matic, Quick and several others to earn up to 1000% APR in the native token called Krill.

Daily reminder that most cryptocurrencies are generally worthless and value is based on speculation. Be ready to lose it all – as many people just did $ krill pic.twitter.com/Qtkb8mpiUl

– Liam Brennan (@LCBrennan) June 20, 2021

“Remember it every day that most cryptocurrencies are essentially worthless and that value is based on speculation. Be ready to lose everything – as many have done with Kril. “

Polywhale isn’t the only scam on Polygon. The ongoing profit-farming craze, high liquidity, and negligible fees have made the network the perfect place for scammers to thrive.

Over the weekend, two other smaller farms, Polycash Finance and Polysa Finance, performed two carpet-drawing operations and dumped local tokens before deleting their social media accounts.

Polygon has quickly become one of the most popular DeFi protocols of all cryptocurrencies. During the height of the DeFi boom in May, the platform saw 75,000 new active users over a seven-day period.

Annie

Bitcoin magazine

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