Key Points:
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
US House passes Anti-CBDC bill aiming to prevent the Federal Reserve from creating a Central…
The Loopring TKO airdrop, which the team behind Looping received from Taiko, will be distributed…
Grand Cayman, Cayman Islands, 23rd May 2024, Chainwire
SEC Chairman Gary Gensler declined to provide details on the spot Ethereum ETF decision but…
ENON is excited to unveil its innovative cryptocurrency trading platform, designed to revolutionize how individuals…
Optimism has announced the opening of applications for the fourth round of retroactive public goods…
This website uses cookies.