Luna Yield, a DeFi yield aggregator, enticed investors with promises of huge yields. Luna Yield has vanished, taking with it $6.7 million in investor monies. The compensation scheme for individuals affected has been approved by SolPAD, the platform that launched the Luna IDO.
Investors in Luna Yield, a recently launched yield aggregator, are concerned that the project’s developers stole $6.7 million from customers just two days after its introduction.
The Luna Yield project has been taken down and its social media accounts have been deleted after the company made off with almost $6.7 million in crypto assets via a Solana address used to launch the original contract. According to a Coindesk source, the Luna Yield creators made off without paying the money owed to them. The site’s website has been removed and its Twitter account has been deleted.
Large quantities of WBTC, WETH, LUNY, and USDT were sent to an anonymous Tornado wallet using the Tornado address. The address signed many transactions involving substantial sums of money that were combined into one transaction.
Luna Yield was launched on Tuesday by SolPAD, a multichain fundraising platform powered by Solana. This was SolPAD’s second “IDO,” or initial coin offering, in which a startup raises money by selling a new cryptocurrency on a decentralized exchange. When a blockchain project raises funds by selling new currency, it is known as an initial dex offering, or IDO.
About 200 investors in Luna Yield, got together on Telegram to voice their frustrations over the suspension of its social media accounts. The group dubbed “Luna Yield RUG PULL” was created after the company’s social media account was suspended. Some of the members of the group said they were angry about the suspension and called for the company to be reinstated.
A crypto exit fraud is known as a ‘rug pull’ when a newly created decentralized finance initiative disappears with the funds of investors. To entice investors, scam projects often offer large yields to entice people into investing in them. The scam is called ‘rug pulling’
SolPAD, the board of directors is “gathering proof” of Luna’s alleged rug pull, according to Telegram. The company has been responsive throughout the board’s response to the allegations, a spokeswoman said. It may have an “enormous impact on investors” and its community, she said. If true, it could have a “significant impact on investor confidence,” the spokeswoman added. Luna Yield IDO participants will be compensated in US dollar stablecoin USDC “with a value equivalent to 60% of the purchased amount” SolPAD said.