Lending and Borrowing Protocol Ordinals Finance conducted a $1 million rug pull, blockchain security firm CertiK reported. Following the disclosure of the suspected exit scam, the DeFi protocol appears to have erased its social media presence.
- CertiK, a blockchain security firm, stated that 269 million Ordinals Finance (OFI) tokens were withdrawn.
Ordinals Finance, an Ethereum-based decentralized finance (DeFi) platform that allows users to undertake lending and borrowing services, has been accused of carrying out a “rug pull.”
CertiK, a blockchain security firm, claimed on April 24 that the protocol’s developer extracted 256 million Ordinals Finance (OFI) tokens from its smart contracts using a “safuToken” function. CertiK reported that another 13 million OFI were deleted via a “ownerRewithdraw” function, increasing the total number of tokens withdrawn to 269 million.
The overall loss to investors, according to the blockchain security firm, is $1 million. Also, the project’s Twitter account appears to have been deleted.
According to blockchain data, the Ordinals deployer account used the safuToken function to withdraw almost 256 million OFI tokens. These funds were purportedly transferred to a different Ethereum account in a series of transactions. According to blockchain records, this address received OFI from numerous addresses before transferring tokens into Tornado Cash.
Further investigation of the 256 million OFI, the deployer account executed 12 distinct transactions exchanging OFI for Ether.
The deployer then sent 85.5 ETH to an account ending in “CCF,” where it was put into Tornado Cash.
The safuToken transfer took place through a contract called “OEB Staking.” This function aims to allow the “owner” of the contract to transfer all staked tokens to itself.
The deployer account also made several calls to the OFI staking contract to transfer tokens to itself, each time calling a method on lines 305-308 called “ownerRewithdraw.” It appears to allow the owner to withdraw any number of tokens from the staking contract as long as the contract balance exceeds a variable known as “totalOwedValue.”
The price of the OFI token has fallen 94% in the last hour.
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Caleb is a technical writer at AlteBlock with over 2 years of experience in covering DeFi-related content such as crypto news, exchange reviews, and guides. He is also a Civil engineering graduate who can be found on-site when not writing an article.