Another exit scam? The developers of the decentralized finance protocol DEFI100 are suspected of stealing $32 million of user funds.
May 24, 2021, | AtoZ Markets – The developers of the decentralized finance (DeFi) protocol DEFI100 were caught stealing $32 million of user money. On Saturday, May 22, a message appeared on the official website of the project that the users of the service were scammed and they can't do anything about it.
After a while, the ad disappeared but managed to be cached in Google.
However, late Sunday the official Twitter handle of the controversial DeFi project officially admitted that its website was hacked. At the time of writing, the site gives out a 404 error.
DeFi100 denies allegations of exit scam
The developers defended themselves against the allegations, saying the highest market cap project ever had was less than $2 million, and [the] project never held any investors’ funds.
“The project has never held investors' funds! Rumors of $32 million in fraud are false and unfounded,” said the developers of DEFI100.
However, the developers of the project admitted that the investors suffered "huge losses" because the project did not implement the plan. The DEFI100 team also added that the site was hacked by hackers. At the same time, the user @CryptoWhale believes that the DEFI100 developers are trying to cover their tracks. This is because users found contact details, @CryptoWhale claims. It is noteworthy that @CryptoWhale himself was previously accused of fraud.
The price of the native token DEFI100 (D100) increased by 28.8% to $0.09. At the same time, back in February, the token cost $3.53.
Read also: Flash Loan Attack Causes DeFi Token Bogged Finance to Crash 100%
DEFI100 is a synthetic index fund protocol and relocation project based on the Binance Smart Chain (BSC) blockchain. However, almost immediately, project investors began to leave the protocol due to unrealized expectations and the lack of a project roadmap.
As AtoZ Markets reported, since the beginning of May, four DeFi protocols have become victims of flash loan attacks. The total amount of losses have exceeded $20 million.
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