The developers behind the Safereum project have executed an exit scam that has left investors in shock and caused a massive drop in the price of the app’s native token.
According to blockchain security analysts and a CertiK report, approximately $1.3 million of funds were stolen in this fraudulent action.
The exit scam, a practice in which developers abandon a project and sell large amounts of the native currency, took place shortly after the Safereum team raised around $600,000 for a spin-off called “Safepad.”
This new development has increased the severity of the incident, as part of the funds raised were used in this fraudulent action.
Safereum developers used the token deployment address “safereum.eth” to unlock the token supply and sell over 600 Ether (ETH) in SAFEREUM tokens.
This sell-off caused the token’s price to drop by 94%, taking it from $0.000014 to $0.0000008.
CertiK, a blockchain security firm, confirmed the authenticity of the exit scam and noted that the stolen funds have been distributed across multiple wallets to make them difficult to trace.
Scam and Attempt to Remove Traces From the Map
Additionally, X’s official Safereum account (previously known as Twitter) has been deleted, raising suspicions about the legitimacy of the project.
The crypto community is shocked by the magnitude of this rug pull. Even an influential pseudonymous non-fungible token (NFT) trader, Died.eth, described the Safereum exit scam as one of the most “insane” he has witnessed.
https://twitter.com/website/status/1716538723939082693
Several influencers who promoted the project have also been pointed out for their alleged complicity in this scam.
This incident highlights the importance of conducting thorough due diligence before investing in cryptoasset projects and underlines the inherent risks in the market. The community is calling for greater regulation and transparency to prevent future events like this.
