PeckShield: DeFi Blur Finance project team fled with users' money

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Cybersecurity agency PeckShield reported that the DeFi Blur Finance project team stole user funds using a liquidity withdrawal scheme called “rug pull.”

According to PeckShield's Twitter post,The team at Blur Finance, a lending platform powered by BNB Chain and Polygon, shut down the project, blocked social media channels, including Discord, and disappeared with more than $600,000 in user assets.

The actions of the project developers representis a traditional fraudulent scheme for withdrawing liquidity (rug pull). Attackers launch a DeFi project and promote it on social media before issuing tokens and listing them on a decentralized exchange (DEX).

After investors purchased tokens inHoping for income, the developers close the project and disappear with the stolen funds. The liquidity provided by investors to a scam project can amount to millions of dollars.

Blur Finance had over 754 holders inBNB Chain network. The project recently integrated with Polygon and, as of last week, was delivering about 4,000% annualized returns. After the scam was reported, the BLR project token fell by 99% and is now trading at $0.00064, while last week its price reached $0.6.

Previously users of the Web3 Dragoma project onPolygon lost assets worth $3.5 million as a result of a similar scheme. Many experts believe that one of the biggest frauds was the bankruptcy of Terra.