SudoRare, a fork from SudoSwap and LooksRare NFT platforms scammed users with more than 500 ETH or more than $800,000 at the time of the incident. The platform’s social media accounts were all deleted on Tuesday.
The NFT platform was developed by an anonymous team making it a shady entity to begin it. Users from the Crypto Twitter community have issued warnings that the project could turn into a rugpull and one of them was @2shabby. In this tweet, he warned users not to participate due to the high risk of losing their money and the possibility of being a scam is too high.
🚨 WARNING THREAD 🚨
DON'T PARTICIPATE UNLESS YOU WANT TO TAKE THE RISK OF LOSING YOUR MONEY. THIS TEAM IS ANON, WON'T DOXX AND THE POSSIBILITY OF THIS BEING A SCAM IS HIGH.
Everything I share must be checked by yourself. I'm not giving financial advice or tell you to jump in. https://t.co/snrQnK6cYQ
— Shabby (@2shabby) August 22, 2022
Adam, another Twitter user that goes by the username @surfcoderepeat also expressed his concern and warned users about SudoRare.
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 really battle tested already
stay safe as could be a scam.
— Adam (@surfcoderepeat) August 23, 2022
But despite these warnings, users seemed to ignore these warnings and were later on duped. Shortly after going live, the attacker drained the platform’s fund and withdrew more than $300K of WETH, $200,000 in XMON, and $314,700 worth of LOOKS tokens and swapped them for ETH. The stolen assets were then transferred to three Ethereum wallets. The movement of funds was tracked by blockchain security firm PeckShield and was posted on their Twitter account.
#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
In the latest development, PeckShield stated that the culprit behind the attack is a user of the centralized exchange Kraken.
— PeckShield Inc. (@peckshield) August 23, 2022
With Kraken’s KYC in place, the possibility of getting the funds back and the perpetrator being apprehended could be high. Everyone is hoping that the money scammed will soon be returned to the rightful owners. But time and again, warnings have been issued on projects that could be shady and turning into rugpull could already be imminent but sadly some investors failed to heed them. Some have even deliberately ignored these calls which resulted in huge losses.