The unknown crew that created SudoRare, a fork of the popular NFT exchanges SudoSwap and LooksRare, has defrauded consumers of around $820,000 worth of various cryptocurrencies.
SudoRare’s website and all associated social media pages were barely open for six hours when the company decided to pull the plug.
SudoRare vanishes with $820,000.
After multiple warnings on Crypto Twitter that SudoRare may be a scam, the anonymous team behind the decentralised NFT exchange has pulled the plug. Users have been robbed of around $820,000 worth of ETH and other cryptocurrencies.
According to on-chain data, the event occurred early on Tuesday morning, just six hours after the launch of SudoRare. The exchange, created by an unknown team as a fork of the NFT marketplaces LooksRare and sudoswap, was meant to let users form liquidity pools for NFT collecting and charge some fees by staking the project’s native token SR. However, shortly after going live, the crew “pulled the rug”, which is crypto jargon for taking customer funds and vanishing without a trace. Soon after stealing $820,000, the platform’s website and Twitter account disappeared.
The attackers removed around $315,700 in WETH, $200,000 in XMON, and $314,700 in LOOKS tokens from the exchange before exchanging the assets for ETH and transferring the proceeds to three Ethereum wallets. PeckShield, a blockchain security company, has linked the attacker to a Kraken-funded wallet. The actor behind the SudoRare rugpull is a user of @krakenfx, the company tweeted today, presenting on-chain evidence of the connection.
#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
As a regulated U.S.-based exchange, Kraken is subject to “Know Your Customer” regulations requiring all its customers to pass identification checks. This indicates that at least one person associated with the attack may be known to the exchange.
Despite several warnings on Crypto Twitter that SudoRare could be a scam, the robbery occurred. “sudo rare is live, but ppl staking into an upgradeable contract that points to a fork of master chef… Can’t see any reason to need an upgradeable version of Masterchef as it’s battle-tested already… stay safe as could be a scam,” a Twitter user going by the name Adam noted earlier today. The team yanked the rug out from under the situation a few hours later.