SudoRare NFT exchange has abandoned its project and has stolen nearly $800,000 worth of user funds.
The project went offline within six hours of launching after deleting all of its official social media accounts
An NFT exchange dubbed SudoRare has disappeared after scamming and draining users’ crypto funds worth $800,000.
SudoRare, an NFT exchange created and propagated as an amalgamation of LooksRare and SudoSwap by anonymous creators, has abruptly gone offline, within six hours of its launch.
The platform presented itself as a decentralized NFT exchange by tempting users to create liquidity pools for NFT collections and later collect fees by staking its native token SR.
However, within six hours of its launch, the team behind the SudoRare crypto exchange seems to have “pulled the rug,” which in common crypto terminology refers to a scam where the crypto team suddenly abandons their project and vanishes in thin air after stealing valuable user’s funds.
SudoRare creators have also deleted their official website alongside deleting all social media accounts sparking severe panic among the crypto community.
The scammers have stolen nearly 519 ETH from the platform. The stolen crypto portfolio includes tokens in Ethereum, (ETH), LooksRare (LOOKS), and USD Coin (USDC) which according to the Block have already been swapped for ETH on Uniswap and have been moved to three different wallets.
Blockchain security and analytics firm PeckShield has helped trace one of the hackers tied to the rug pull by identifying its wallet which is linked to the Kraken crypto exchange.
Since Kraken is a US-based crypto exchange that has made KYC rules mandatory for all its users, several crypto enthusiasts are hoping that one of the hackers will soon be traced and arrested for pulling a crypto rug pull.
In addition to this, several Twitter users were able to detect early and categorize SudoRare as a mysterious and dubious entity capable of pulling the rug.
Users had also issued cautionary tweets warning customers to do their research before investing their money with the firm. However, it seems that many users did not pay heed to their alarming red flags and got scammed in the end.