NFT swapping platform MetaSwap was rug pulled. The blockchain security and data analytics company Peckshield tweeted on December 27 that a rug pull happened, with 1.100 BNB, worth around $628.000 at current prices stolen. Peckshield urged users not to stake their holding in the platform and revoke transactions.
#RugPull PeckShield has detected that @MetaSwapMGAS soft-rugged, the stolen funds (1,100 BNB) are transfered to @TornadoCash (#BSC). DO NOT STAKE in this contract and if you've approved it, REVOKE https://t.co/b7sSsMz3ZE— PeckShield Inc. (@peckshield) December 27, 2021
In a later tweet, the analytics platform shared data from EtherScan, where an address MetaDAO Rug transferred 800 Ether (over $3.2 M) to Tornado Cash, which delivers transaction privacy with complex solutions that make transactions untrackable.MetaSwap Gas disappeared, removing its Medium posts, Instagram, and Twitter accounts, which proofs that the project was rug pulled.
Rug pull is a type of scam when new project developers get investments from users, then withdraw funds and disappear. Mostly, the scammers create a liquidity pool with the assets developed by them and established crypto, like Ether or BNB. Then they disallow the function of selling tokens via a code. Next, they steal funds and disappear.
Malicious actors in crypto practice rug pull scams often. Investors need to be careful and study projects well before putting their holding in them.