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Scam Alert

Rugpull Victims Rejoice: DEX Merlin and CertiK Pay $2M in Compensation!

April 27, 2023 - Around 2 mins mins to read

Key Points:

  • Merlin DEX users hit by $2M rug pull.
  • CertiK to compensate affected users.
  • Investigation ongoing to track rogue developers.
zkSync-based decentralized exchange Merlin was recently hit by a rugpull scam that resulted in the loss of almost $2 million in user funds.
DEX Merlin and CertiK Pay 2M in Compensation

Blockchain audit firm CertiK has announced plans to compensate affected users. A rug pull scam is an exit scam in which the perpetrators create a new token and launch a liquidity pool for it, pairing it with a base token such as ether (ETH) or a stablecoin like dai (DAI). In this case, Merlin’s mage (MAGE) tokens were targeted during a public sale.

The attack still occurred despite Merlin’s claims of having undergone an audit conducted by blockchain security firm CertiK. Further analysis by firms and analysts suggests that the attack was carried out by rogue developers who had access to Merlin’s smart contract private keys, enabling them to withdraw all liquidity from the protocol.

CertiK is investigating the incident and has identified that the rogue developers are based in Europe. The audit firm is collaborating with law enforcement agencies in an attempt to track them down. Meanwhile, CertiK has pledged to initiate a compensation plan to cover the lost funds for affected users.

To further incentivize the rogue developer to return the stolen funds, CertiK has offered a 20% white hat bounty if they agree to return 80% of the funds. Although private key privileges are outside the scope of a smart contract audit, CertiK has stated that they are committed to assisting impacted users in this case.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Annie

Coincu News

CertiK

DEX Merlin

Merlin

Rugpull Victims

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Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.
Scam Alert

Rugpull Victims Rejoice: DEX Merlin and CertiK Pay $2M in Compensation!

Key Points:

  • Merlin DEX users hit by $2M rug pull.
  • CertiK to compensate affected users.
  • Investigation ongoing to track rogue developers.
zkSync-based decentralized exchange Merlin was recently hit by a rugpull scam that resulted in the loss of almost $2 million in user funds.
DEX Merlin and CertiK Pay 2M in Compensation

Blockchain audit firm CertiK has announced plans to compensate affected users. A rug pull scam is an exit scam in which the perpetrators create a new token and launch a liquidity pool for it, pairing it with a base token such as ether (ETH) or a stablecoin like dai (DAI). In this case, Merlin’s mage (MAGE) tokens were targeted during a public sale.

The attack still occurred despite Merlin’s claims of having undergone an audit conducted by blockchain security firm CertiK. Further analysis by firms and analysts suggests that the attack was carried out by rogue developers who had access to Merlin’s smart contract private keys, enabling them to withdraw all liquidity from the protocol.

CertiK is investigating the incident and has identified that the rogue developers are based in Europe. The audit firm is collaborating with law enforcement agencies in an attempt to track them down. Meanwhile, CertiK has pledged to initiate a compensation plan to cover the lost funds for affected users.

To further incentivize the rogue developer to return the stolen funds, CertiK has offered a 20% white hat bounty if they agree to return 80% of the funds. Although private key privileges are outside the scope of a smart contract audit, CertiK has stated that they are committed to assisting impacted users in this case.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Annie

Coincu News

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