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Crypto News

Binance Introduces Smart Contract for Reimbursement Following $3M Xirtam Rug Pull

Author

Jay Solano

Tags

Tags Editor's Choice / Slider Posts

Reading time

2 mins
Last update

Author

Jay Solano

Tags

Editor's Choice / Slider Posts

Reading time

2 mins
Last update

Author

Jay Solano

Tags

Editor's Choice, Slider Posts

Reading time

2 mins
Last update

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In the wake of the Xirtam rug pull scam, cryptocurrency exchange Binance has implemented an automated smart contract designed to refund affected users. According to an announcement made on September 6, victims can reclaim their lost funds by connecting their wallets to Etherscan, undergoing a verification process, and invoking the claim function via the contract’s address. To be eligible for restitution, users had to submit their applications by August 2.

The exchange stated, “We have received several reports about XIRTAM incidents and understand the gravity of the situation. Immediate action has been taken, and an investigation is underway. The suspicious funds have been frozen in the Binance account. We thank you for your patience and understanding as we work to resolve this issue.”

In April, Xirtam, based on the Arbitrum network, had accumulated approximately 1,909 Ether, equivalent to $3.2 million at current valuation, from user deposits. The fundraising consisted of two direct initial coin offerings (ICOs) and two community sales via Fjord Foundry and SushiSwap liquidity pools.

A planned Initial Airdrop Offering (IAO) by Xirtam, scheduled to be facilitated by Arbitrum-based decentralized exchange AlienFi, was abruptly canceled. The termination came five minutes before its planned start after AlienFi discovered an undisclosed seed sale by Xirtam at a price significantly lower than agreed upon.

Shortly after the completion of the fundraising rounds, the project’s owners executed a rug pull, emptying all assets from the Xirtam smart contract. Notably, these stolen funds were directly transferred to Binance, which led the exchange to freeze the assets on May 4. Interestingly, the fraudsters did not use any mixer or bridging services to conceal the origin of the funds before depositing them into Binance.