NFT Platform SudoRare Disappears With $850k in Ethereum

Hacker looking at Bitcoin code SudoRare

The NFT platform SudoRare has disappeared taking away $850k worth of Ethereum (ETH). The platform worked as an automated market maker (AMM) for non-fungible tokens. The team behind SudoRare decided to disappear with users’ funds and become one of the latest scams to hit on the crypto industry. 

SudoRare NFT Platform Rugged 519 ETH

The recently-released NFT platform SudoRare has run away with close to 519 ETH ($850,000 at the time of writing the post). According to Peck Shield Alert, SudoRare deleted social media accounts and groups. At the same time, the funds have also been transferred to three new addresses. Each of these wallets received 173 ETH. 

Apparently one of these addresses belongs to the cryptocurrency exchange Kraken, which could be positive news for users if the exchange decides to freeze the account that received these funds. At the same time, they stole other digital currencies such as LOOKS and USDC. 

While in the beginning it could have seemed like a problem faced by the NFT platform, two things showed that there were bad intentions behind it. The first thing is that the team decided to delete the social media accounts. If that happens, this is usually a very bad sign for any type of project. The second thing is that they moved the stolen funds to other addresses, including a cryptocurrency exchange. 

It is worth pointing out that there have been several negative comments about NFT platforms and decentralized finance (DeFi). One of the aspects that have hit the market over the last few years is related to how centralized platforms could still control users’ funds. At the same time, some DeFi platforms could decide which wallets interact with certain smart contracts, making some of these DeFi websites not decentralized at all. 

At the same time, the cryptocurrency industry has been marked by hundreds if not thousands of attacks over the last years. Some of them included QuadrigaCX, Coincheck, Binance, Mt. Gox, and many others. Some of them affected thousands of users while others were more precise and affected just a few wallets. 

When it comes to the decentralized finance market, we have also seen a large number of rug pulls. While these types of attacks or scams are not new, they became very popular with the expansion of Initial Coin Offerings (ICOs) between 2016 and 2018. With the growth of the decentralized finance market and non-fungible tokens, new scams appeared. 

It will now be a matter of time to see what will happen with the people that were involved in this recent rug pull. It might be possible for Kraken to freeze the funds of the people involved in this attack and give back, at least part of the funds, to the users affected. Nevertheless, this could take some time and there could still be some discussions with the attackers to give all or part of the funds back. Finally, back a few weeks ago, there were some users on Twitter claiming that SudoRare was a scam. Brentskettit was one of them. 

SudoRare

Jonathan Gibson

Jonathan Gibson