Scam alert! TurleDex decentralized cloud storage that runs on Binance Smart Chain is now a rugpull exit scam.

TurtleDex just recently launched on March 15 and raised 9000 BNB (Binance Coin) tokens during its presale. 

On March 19, the scam was confirmed by the DeFi project’s partner Jet Fuel Finance in a tweet.

“Attention – The Turtledex (#TTDX) team has exit scammed.

We are just as shocked as everyone to see this unfold. 

Please see the tweet below from @DefiStalker and help us track down the funds sent to @binance 

#TTDX is being removed from Jetfuel.” 

TurtleDex’s website was already taken down including its social media accounts.

A tweet by DeFi Stalker raised concern on the effectiveness of contract audits. 

#TurtleDex $TTDX s/contract was audited by @TechRate1 on 21st of FEB, 2021. Whilst no big issues were found, it asks the question, what is the purpose of a s/contract audit? If developers can simply pull liquidity to dump, are we even asking the right Questions? $BNB $BANANA $FUEL

The report on the contract audit for TurtleDex conducted by TechRate, an analytical agency on Feb. 21 reveals that no severe security issues were found.

Tech Rate contract audit for TurtleDex

Tech Rate contract audit for TurtleDex

According to reports, the investors have tried to call the attention of the team for a possible rugpull but they were immediately brushed off.

Turtledex investor tweet

The funds drained were traded in ETH (Ethereum) through Binance hot wallets. Users are now demanding Binance to return the funds and freeze the accounts associated with the said scam.

It can be recalled that Meerkat Finance, another DeFi project launched on Binance Smart Chain took off with  $30 million worth of BUSD (Binance USD) and BNB (Binance Coin). The funds were later refunded by the developers claiming it as a “test”. 

Exit scams in DeFi projects remain to be one of the major problems in the crypto space. To sustain the growth of adoption of cryptos in the mainstream, effective solutions to combat these problems should be a top priority. The absence of concrete solutions will hinder the growth of crypto products like DeFi and may even result in more rigid regulations.   

All eyes are now on Binance how will it mitigate the effect of the exit scam on its platform. In a previous tweet, Binance founder and CEO Changpeng Zhao stated that they had helped in “chasing funds back” when projects on its platform turn into a rugpull. Let’s all wait for updates on this rugpull scam.