<p><span style="font-weight: 400;">Swaprum, a decentralized exchange on the Ethereum Layer 2 network Arbitrum, appears to have executed an "exit scam" commonly referred to as a "rug pull," absconding with an estimated $3 million in user deposits. </span></p> <p><span style="font-weight: 400;">On-chain</span><a href="https://twitter.com/PeckShieldAlert/status/1659404608685604864"> <span style="font-weight: 400;">analysis</span></a><span style="font-weight: 400;"> from blockchain security firm PeckShield found that approximately 1,628 ETH, equivalent to $3 million, was siphoned off from the platform's liquidity pools.</span></p> <p><span style="font-weight: 400;">The Swaprum team</span><a href="https://arbiscan.io/tx/0x36fef881f7e9560db466a343e541072a31a07391bcd0b9bcdb6cfe8ae4616fc0"> <span style="font-weight: 400;">withdrew</span></a><span style="font-weight: 400;"> liquidity provided against the platform's native token on its exchange. It subsequently sold the tokens against ETH which led to a complete plunge in the price of</span><a href="https://dexscreener.com/arbitrum/0xecf0e6a8d889e10f22597d1396afde8384ba3bd7"> <span style="font-weight: 400;">swaprum (SAPR) tokens</span></a><span style="font-weight: 400;">, rendering the remaining tokens held by unsuspecting investors virtually worthless.</span></p> <p><span style="font-weight: 400;">The funds were then</span><a href="https://etherscan.io/address/0xaaf8b44376f4ef3ed477eeeb3553b7623fef5e1c"> <span style="font-weight: 400;">transferred</span></a><span style="font-weight: 400;"> from the Arbitrum network to Ethereum. The ill-gotten ether was</span> <a href="https://etherscan.io/address/0xaaf8b44376f4ef3ed477eeeb3553b7623fef5e1c"><span style="font-weight: 400;">laundered</span></a><span style="font-weight: 400;"> through Tornado Cash, a popular Ethereum mixer service in an apparent attempt to obfuscate the transaction trail and deter authorities from tracing the funds.</span></p> <h2><b>Swaprum deletes social media</b></h2> <p><span style="font-weight: 400;">Swaprum’s digital footprint virtually vanished overnight, with their social media accounts on Twitter, Telegram and GitHub being deleted. The official</span> <a href="https://swaprum.finance/swap#"><span style="font-weight: 400;">website</span></a><span style="font-weight: 400;">, which served as the front-end for the project’s protocol, remains active. The Block wasn't able to contact the project for a comment. </span></p> <p><span style="font-weight: 400;">Security analysts at Beosin discovered that Swaprum’s smart contract harbored a hidden backdoor functionality. Beosin</span><a href="https://twitter.com/BeosinAlert/status/1659482287422193664"> <span style="font-weight: 400;">stated</span></a><span style="font-weight: 400;">, “The deployer of Swaprum used the add() backdoor function to steal LP tokens staked by users, then removed liquidity from the pool for profit.” This malicious action allowed the perpetrators to take over assets at will.</span></p> <p><span style="font-weight: 400;">This is the latest exit scam to have resurfaced in the Ethereum Layer 2 ecosystem. Last month, developers of a decentralized exchange on the zkSync network, known as Merlin,</span> <a href="https://www.theblock.co/post/228485/merlin-scam-certik-refund"><span style="font-weight: 400;">disappeared</span></a><span style="font-weight: 400;"> with nearly $2 million in a similar case.</span></p> <div id="attachment_231545"class="media-credit-container wp-caption alignnone " style="max-width: 810px;"><img class="has-caption wp-image-231545 size-medium" src="https://www.tbstat.com/wp/uploads/2023/05/sapr-price-15-800x354.png" alt="" width="800" height="354" /><span class="acf-media-credit"><span class="acf-credit"><span class="acf-credit"></span></span></span><p class="wp-caption-text"><span style="font-size: 8pt;">Swaprum Token Price | Source: Dexscreener</span></p></div><br /><span class="copyright"><p>© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.</p> </span>