Binance Recovers $344,000 From DeFi Exit Scam Project Wine Swap

Binance has announced the successful recovery of $344,000 in funds from the attempted exit scam of Wine Swap, a DeFi project on the Binance platform.

November 4, 2020 | AtoZ Markets – The Binance security team helped recover virtually all funds stolen from users as a result of the recent exit scam from the creators of the Wine Swap Automated Market Maker (AMM). Representatives of the exchange told AtoZ Markets about this.

Binance thwarted DeFi exit scam project launched on its platform

The Wine Swap platform was launched on Binance Smart Chain (BSC) on October 13. Just an hour after the start of work, the creators of the project performed an exit scam, appropriating the cryptocurrencies invested by users worth about $345,000.

In total, affected investors sent 19 different tokens to 119 addresses. At the time of the exit scam, the funds on the smart contract 0xa1eaB5F255DD77fED0D8ea81748422ca7ab0eDc4 were sent to the address 0x4BA023aA9196a354C008aD595F67e268420b7005.

Binance and the BSC developer community received notification of the incident, after which specialists were able to track the flow of funds from Wine Swap. These included cross-chain exchanges between BSC and Binance Chain, followed by a transfer to Ethereum. A small part of the funds ended up on two centralized exchanges, as well as on the Binance Bridge, where they were frozen.

By that time, almost all coins had been converted to stablecoins, as well as BNB, ETH, and LINK.

The Binance team analyzed the transactions and identified the addresses whose owners were the victims of the attacker, as well as determined the exact amounts that each of them lost.

Binance identified scammer behind Wine Swap DeFi Project

The next day, October 14, the attacker himself was identified, and soon after that, he was contacted. According to representatives of the exchange, realizing that they were caught on the hot and in order to avoid unwanted consequences, the creators of Wine Swap agreed to cooperate.

From that moment, the process of returning the stolen funds began - the attacker sent them directly to the exchange so that it could distribute them among the victims.

Read also: 5 Platforms That Will Help You Avoid Falling For DeFi Scams

It is reported that most of the funds have already been converted into original tokens. As of this writing, the refund process to affected users is ongoing and is expected to be completed in the coming days.

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