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Safereum plunges 95% after $1.3 mln ‘exit scam’

3min Read

An alert by leading blockchain security firm CertiK has revealed that Safereum developers have executed a $1.3 million rug pull.

rug pull

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  • The news of the rug pull led to the project’s native token plunging by 95% within 24 hours.
  • Several crypto influencers were found to be promoting the scam project.

The crypto community suffered a major shock on 24 October as blockchain security analysts drew their attention to an “exit scam” at Safereum.

CertiK, a leading blockchain security firm, alerted the users to a rug pull executed by the team’s developers.

A memecoin crypto project, Safereum was launched on the Ethereum [ETH] blockchain early in October.

As per CertiK, the project’s developers unlocked the supply of the token, using the token deployment address safereum.eth. Thereafter, they drained more than 600 ETH.

These illicit transactions occurred only hours after the team had finalized a fundraise of $597,000 for a derivative token, Safepad. CertiK remarked these funds constituted part of the total stolen sum, totaling 720 ETH worth $1.27 million.

The team soon routed the sum through a series of wallets, muddling the tracking process.

When we tried accessing the project’s X (formerly Twitter) page, we found it didn’t exist anymore.

The news of the rug pull led to the project’s native token, SAFEREUM, plunging by 95% within the last 24 hours. It was trading at $0.000000654436 at the time of writing.

Source: Coingecko/SAFEREUM/USD

Crypto influencers promoting scams without check

The scam brought attention to crypto influencers promoting “shill coins” without any diligent checks.

Blockchain sleuth ZachXBT underlined the role of a leading anonymous influencer on X who officially promoted the Safereum project. The user had promoted similar scam projects earlier as well.

A leading crypto influencer, GEM DETECTER, revealed that they had also received an offer to promote the project. In the end, they sighed with relief that they didn’t put their followers in danger.

Another influencer, CryptoBit had already alerted GEM DETECTER about the nature of the project.

Another X user criticized a leading handle with a significant follower count for promoting such scams to deceive their followers.

Immunefi, a Web3 bug bounty platform, had reported that hacks and rug pulls cost the crypto industry $1.24 billion from January to August 2023. This loss was attributed to 211 separate incidents.

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Ann is a News Editor at AMBCrypto. After getting a Masters in International Relations, Ann worked at Reuters News for 4 years as a Breaking News correspondent. Ann uses her eye for attention to detail to focus on the regulatory and political developments associated with the crypto-space.
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