Victor Ugochukwu · Dec 14, 2020 . 5min read
DeFi Protocol Yfdex.Finance Executes $20 Million Exit Scam just 2 Days After Listing
Exactly two days after the launch of a Yfdex.Finance, the DeFi Protocol disappears with $20 Million of investors’ funds.
By Komal Joshi · Sep 12, 2020 . 6min read
Yfdex.Finance (Yfdex) has been accused of administering a scam exit and escaping $20 million in investors’ funds. The scam took place after two days of its listing. The decentralized finance project (Defi) influenced people to move their money into savings for a lifetime after just two days of massive social media marketing and then vanished without a trail.
Yfdex.Finance Claimed to Offer 12 Yfdex tokens.
Yfdex.Finance was claiming to be the Defi industry’s dominant player. It claimed that the token’s pre-sale would only be for four hours. Moreover, in its telegram chat with the community members, Yfdex.Finance notified that for investors’ every investment in ether (ETH), they would offer 12 Yfdex tokens. In hours, more than $20 million transfers were successful into the Yfdex protocol. Thousands of investors locked in their funds. However, on September 9, the project ultimately disappeared from the radar, leaving investors at risk of financial distress.
Numerous investors crowded their money to the new profit farming protocol in line with a prevailing trend in the Q2 2020. The investors invested despite innumerable investors and financial advisors’ warnings. On September 10, one of the crypto investors and Cryptowhale analysts informed this Defi scam through a tweet. He described how Yfdex.Finance raised and stole the fund.
DeFi protocol Yfdex.Finance’s All Social Media Accounts Pulled Down?
As per the report, Yfdex.Finance has removed its official accounts from Telegram as well as Twitter. The website of Defi protocol and its Medium pages vanished from the platform. Earlier, the project was using the platform for the promotion. However, recently all those pages show an error message. Lately, a Telegram group chat’s screenshot has displayed a discussion of the Yfdex community about its eponymous token’s pre-sale. In the debate, Yfdex declared that it would start its pre-sale of tokens on September 08, at 16:00 UTC.
This news comes after another huge alleged scam in the Defi space. The anonymous founder Sushiswap was indicted of selling off SUSHI tokens worth approximately $13 million to ETH. Moreover, recently, Sushiswap succeeded in its vampire mining attack on Uniswap, which saw it taking over 75% of its TVL. However, Andre Cronje thinks that it is all a false narrative.
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