- April 26, 2023
- Posted by: [email protected]
- Category:
Ordinals Finance, a DeFi protocol that enables inscription lending and borrowing on Ethereum, has come under fire for allegedly performing an exit scam. According to a press release by CertiK, a blockchain security company, the developer of the protocol reportedly withdrew 269 million OFI tokens from the smart contracts using the safuToken and ownerRewithdraw functions.
Certik confirmed in a tweet that the recent alleged exit scam by Ordinals Finance resulted in a loss of $1 million. The tweet also revealed that the DeFi protocol has deleted all its social media accounts and its website. The funds from the protocol’s smart contracts were consolidated into an externally owned account (EOA) with the address 0x34e…25cCF. The alleged scam has sparked suspicions and concerns among the cryptocurrency community.
According to CoinGecko data, Ordinals Finance’s market value was $2.3 million prior to the alleged exit, but it fell to just over $143,000 afterward, indicating that losses could be more than $2 million. However, this figure may be lower due to some OFI token owners selling their holdings as the news broke. Nonetheless, the accusations of an exit scam have sent shockwaves through the DeFi community, renewing concerns about the risks of investing in the rapidly expanding sector.
As reported by Blockchain data, the 256 million OFI tokens that were allegedly withdrawn using the safuToken function were transferred to a different Ethereum account through several transactions. The recipient account had reportedly received OFI tokens from various addresses before transferring them to Tornado Cash. Meanwhile, the Twitter account of Ordinals Finance seems to have been deleted, further deepening concerns about the possibility of an exit scam.
The alleged exit scam by Ordinals Finance highlights the need for investors to exercise caution when participating in DeFi protocols. The swift deletion of social media accounts and website by the project after the accusations only adds to the suspicion surrounding the situation. As always, it is important for investors to conduct due diligence and research thoroughly before investing in any cryptocurrency or DeFi project. While the full extent of the damage caused by the alleged scam remains to be seen, it is a stark reminder that the decentralized and largely unregulated nature of DeFi can present significant risks for investors.
