The DeFi project TurtleDex is believed to have had rugpull 9,000 BNB, which is the equivalent of $2.4 million, from the liquidity pool raised in the presale five days ago. The funds were converted into ETH and sent to multiple wallets hosted by Binance.
Another DeFi project on the Binance network takes-off with 9,000BNB
According to reports, the founders of TurtleDex, a Binance Smart Chain (BSC) -based project, ran off after withdrawing the DeFi project’s liquidity pool.
On March 15, TurtleDex raised 9,000 BNB for their liquidity pool and promised to use TTDX tokens to generate high returns to attract cryptocurrency investors and yield farmers.
The Twitter user DeFi Stalker spread this news and stated that Turtle has withdrawn the liquidity pool placed on ApeSwap and PancakeSwap. The money is converted into ETH and sent to 9 Binance wallets.
He added that the project’s website was offline and the Telegram channel was not active.
The aforementioned cryptocurrency reporter Colin Wu said on Twitter that the community has asked Binance to freeze those wallets. Oddly enough, when some community members asked the TurtleDex team turtles if they could rugpull and they replied, “No, because the hands are too short.”
Earlier this year, in late January, another BSC-based DeFi project, PopcornSwap, also made a fuss, stealing $2 million worth of cryptocurrency from a pool of liquidity from users.
The Meaning of Rugpull
The term Rugpull is applied to an exit-scam conducted by DeFi project teams when they siphon crypto from the liquidity pools in which stakers and yield-farmers put their crypto.
The term describes a situation when someone pulls the rug from under another person’s feet, making them fall over. The “pull” here is a wordplay on “liquidity pool.”