- Six hours after its debut, SudoRare was shut down, and tokens worth over $800,000 were withdrawn from the platform’s wallet address.
- PeckShield data shows that the money has already been transferred to three more wallets.
- It was most likely a “rug pull,” in which the project’s founders extract all the funds they can from it before abandoning it.
The decentralized non-fungible token (NFT) exchange SudoRare shut down six hours after it launched, and tokens worth more than $800,000 were removed from the platform’s wallet address.
The money has already been transferred to three other wallets, according to PeckShield data. One of the wallets has been identified by PeckShield as belonging to a Kraken user.
#PeckShieldAlert #rugpull Seems like @SudoRare rugged 519 $ETH (~$815k).
SudoRare already deleted its social accounts/groups, sudorare[.]xyz is down
Stole funds already transferred to 3 new addresses (173 $ETH/address):
0xbFb784…7EAa https://t.co/mPC4bl4k6W pic.twitter.com/O5D7jThYvm
— PeckShieldAlert (@PeckShieldAlert) August 23, 2022
PeckShield and other observers assumed that the project’s founders were responsible for its demise. This is because they were the only individuals who were probably to have access to the liquidity in the pool; the hack occurred quickly after launch; it was carried out by an anonymous team, and the team promptly removed all the social media profiles and associated websites.
As a result, it was probably a “rug pull,” where the founders of a project extract all the funding they can from it and then abandon it.
The USD Coin (USDC), looksrare (LOOKS), and Ether (ETH) tokens were pulled from the NFT exchange platform. On Uniswap, the USDC and LOOKS tokens have already been exchanged for ETH. The rug pull cost the platform a total of 519 ETH ($815,000).
The NFT platform had only been in use for six hours before Tuesday’s rug pull. Additionally, the platform’s websites, blogs, and social media pages have all been taken down. Before the fake was exposed, SudoRare had received multiple Twitter cautions that it might be a fraud operation. The unnamed team was mostly blamed by detractors as the cause of their worries.
LooksRare and SudoSwap were intended to be integrated into SudoRare. They are both NFT markets. As a decentralized marketplace for trading NFTs, SudoSwap enables the establishment of liquidity pools for NFT collections. Like OpenSea, LooksRare is more of a conventional NFT marketplace, but it also offers the LOOKS native token, which is intended to reward platform users who buy or sell NFTs.
These two purposes were intended to be combined by SudoRare, which would have allowed users to stake SR, the project’s native token, in exchange for ETH trading commissions. That is until every last penny vanished.