Binance is a crypto exchange podium that has been in the news for all the wrong reasons lately. The platform hosts an active user base of 100 million globally and has managed to list 184 unique digital tokens on its trade listing thus far. However, according to news streaming on all major crypto platforms, a recently launched DeFi blockchain by the name of TurtleDex has folded its operations suddenly after conducting a major scam.
TurtleDex was only a green crypto project and had been raising money from investors to create a liquidity pool by inviting them to exchange the token TTDX for BNN. TTDX was the native currency of the TurtleDex blockchain. The liquidity pool was able to raise 9000 BNB coins until recently. However, on March 15, 2021, all of these coins were converted into ETH, and the project was shut down.
Users Looking to Take Action Against Scam Artists
Long-time crypto-journalist Colun Wu was the first one to point to this massive rugpull happening on Binance. In a recent tweet from this official Twitter account, @WuBlockchain, has applied to Binance authorities to take action on this incident and freeze the accounts of the scammers. According to reports, the stolen BBN has been sent to 9 different digital wallets on Binance after being converted to ETH.
In the aftermath of this scam, the users that were trading with this DeFi project have been left with an unexpected shock and loss of $2.4 million. Another crypto ninja @DeFiStalker has been running around in major crypto spaces on Twitter to raise awareness about this unfortunate incident. He has reported that both major liquidity pool stacks of TurtleDex have been removed from ApeSwap and PancakeSwap.
The users cannot access the managers of TurtleDex as the project website, social media accounts, and Telegram channel have been siphoned. The prime matter of concern for Binance users is that another such incident was conducted on this exchange earlier this year when a liquidity pool PopcornSwap arranged a rugpull after stealing $2 million from investors.
The term rugpull is used for crypto projects that move their liquidity pools to other digital currencies and disappear without warning. The use of ‘pull’ is intended to be a wordplay on the liquidity pool. Insider Journalist Wu tried to contact the managers of TurtleDex to get a response from them. Before going offline, the account manager by the name of TurtleDex Leonardo replied that Turtles could not rugpull as their hands are “too short.” As of now, the value of TTDX is marked as zero on BscScan and Binance.