2023-05-26 12:33:23
The decentralized finance (DeFi) protocol SeaSwapSui, which operates on the newly launched blockchain, Sui (SUI), has left investors reeling by disappearing from the social media presence. According to CertiK, a blockchain security firm, SeaSwap founders executed an emergency withdrawal of SUI from the project token sale contract, taking approximately $32,000 in assets.
#CertiKSkynetAlert ????
We are seeing an exit scam from @SeaSwapSuiwhich has deleted Twitter and abandoned social channels.
The admins invoke emergency withdrawal of SUI from the token sale contract for a total of 32787 SUI ($32k).
— CertiK Alert (@CertiKAlert) May 26, 2023
Further investigation by Crypto Economy into the matter showed that the project’s social media presence, including its Twitter account, has become inaccessible. Additionally, their Discord server has been abandoned by both admins and moderators, further deepening the veil of uncertainty surrounding the project.
SeaSwap had promised to be a decentralized exchange (DEX) built on the Sui blockchain, facilitating fast and secure cryptocurrency trading. The protocol employed an automated market maker system, integrating a central order ledger to offer liquidity and real-time trading at market rates.
The project’s white paper promised additional revenue-generating opportunities through liquidity provision and staking, thereby attracting investors. However, it has now become clear that SeaSwapSui was nothing more than an elaborate scam.
Suipiens Raised Some Red Flags on SeaSwap
Interestingly, a community watchdog known as Suipiens, which specializes in analyzing and reporting news within the SUI blockchain ecosystem, had previously raised concerns on May 22 regarding irregularities associated with SeaSwapSui. Suipiens noted that the project’s domain had been registered just five days before Sui’s mainnet launch, raising suspicions regarding its viability and long-term goals.
2/ Most of the functions on their website are fake/not working.
The Liquidity and APR figures are just symbolic figures.
Lmao, Sui even doesn’t have the official MATIC token. pic.twitter.com/pu8EVIU5yq— Suipiens ???????? (@suipiens) May 22, 2023
In addition, Suipiens discovered numerous red flags that suggest fraudulent activity. Key functionalities on the SeaSwap website, such as liquidity and APR figures, were false or not working. To make matters worse, sections of project documents and white paper were copied from other projects.
“We tried to contact the team for more information and hope we made a mistake,” concluded Suipiens. “However, they refused to provide any further information.”
PROTECT YOURSELF AGAINST EXIT SCAMS
Unfortunately, exit scams are prevalent in the cryptocurrency space. These scams involve the sudden disappearance of the developers or founders of the project who flee with the funds of the investors.. Exit scams can be executed in a number of ways, including shutting down the project altogether and seizing the funds, suspending withdrawals, or even selling the project to new owners while pocketing the lion’s share of the profits.
To protect yourself from these scams, investors should be cautious and perform due diligence. Only invest in projects with a trustworthy reputation following thoroughly researching the project team and details. It is crucial to only invest money that one can afford to lose and to be skeptical of promising projects. unrealistic returns. Besides, investors should remain vigilant for red flags of an exit scam, such as abrupt changes in project leadership and miscommunication by the team.
Raising awareness of potential scams on social media platforms or other channels can also help protect other investors, just as Suipiens bravely did when alerting the public to Seaswap.
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