SudoRare developers stole $815,000
By Oleksii Haiduchyk 1715 27 Aug 2022
The developers of the SudoRare protocol were online for only 6 hours and managed to steal 519 ETH (about 815 000 USD). Social media accounts and the protocol website are no longer available.
SudoRare has “pulled the rug” from under their customers’ feet.
Rug pull is a term used when a team withdraws all funds from a project, disappears with them, and closes access to all accounts. This is the most common type of fraud and is pretty easy to execute. Despite this, most investors fall into this trap.
The essence of the SudoRare protocol was to exchange NFTs for ERC-20 coins. Six hours after its launch, the project suddenly ceased to exist. Access to the project website was closed, and all accounts were blocked. Although there were many discussions in the networks that it could be another SCAM project, investors believed in the aggressive PR campaign and managed to spend quite a large sum.
PeckShield (a cybersecurity agency) reports that the money was transferred to three different accounts, 173 ETH each, before closing. One of the wallets belongs to a user of the Kraken exchange. The total amount was 519 ETH (815,000 USD).
The agency suggests that the protocol developers carried out the scheme as they maintained their anonymity, had access to all assets, and deactivated all possible accounts.
According to the anonymous developers, the project was supposed to be the link that unites SudoSwap and LooksRar (hence the name). But as the investors realized, it was just another SCAM project.
SudoRare is an example of a simple fraudulent scheme that can rob investors of a significant amount of money in a short period of time. This is another reminder to carefully check the information about the companies you want to entrust your money to.