Binance Smart Chain project TurtleDex pulls the rug on its users and steals $2.5 million

TurtleDex, a Binance Smart Chain dApp, exit scammed its users today, after its highly anticipated launch.

Jet Fuel Finance, a yield farming ecosystem that partnered with TurtleDex, confirmed the scam on Twitter. A user called @DeFiStalker posted screenshots of the diverted liquidity pools. ApeSwap and PancakeSwap couldn’t provide liquidity as users started desperately selling TTDX (TurtleDex’s native token) at prices near zero.

The protocol exchanged the tokens for ETH on Binance. Investors are demanding Binance to freeze all wallets, but the exchange has not made any official comment at the moment.

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. https://t.co/ZUjRmPbrs2 https://t.co/3WvsYSWATg

— Jet Fuel BSC (@Jetfuelfinance) March 19, 2021

The user stated that “today is a sad day for TTDX holders” adding that all communication channels were inactive. The owners of the project immediately deleted all related social networks.

Users are now demanding Binance reimburse funds to affected users and freeze all wallets. The community was shocked, as TechRate, an analytical and engineering agency, audited the project. The platform did not find security issues, but this rug pull has raised concerns about the usefulness of contract audits.

#TurtleDex $TTDX s/contract was audited by @TechRate1 on 21st of FEB, 2021. Whilst no big issues were found, it asks the question, what is the purpose of a s/contract audit? If developers can simply pull liquidty to dump, are we even asking the right Questions?$BNB $BANANA $FUEL pic.twitter.com/L8rxtwpnYo

— DeFi Stalker (@DefiStalker) March 20, 2021

Another rug project of BSC

It is worth noting that this is not the first decentralized project on Binance Smart Chain that rug pulled. Meerkat Finance, a yield farming pool, was accused of an exit scam. The project stole approximately 13,96 million BUSD and 73,635 BNB, totaling $30 million stolen funds.

“BSC project Meerkat Finance is suspected of being rug, taking away 13.96 million BUSD, and the other 73,635 BNB. MKAT claimed to be hacked and stole all resources. Currently the project website cannot be opened. This may be the largest fraud project on the binance smart chain.”

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