Crypto Scandal: OrdiZK Accused of $1.4M Exit Scam Amid Rising 2024 Crypto Scams
Summary:
The creators behind cross-chain bridging protocol OrdiZK (OZK) might have initiated an exit scam, stealing cryptocurrencies worth $1.4 million from investors, according to blockchain security firm CertiK. On March 4, the protocol's deployer account reportedly dumped 489 million OZK tokens on a decentralized exchange, causing the token's value to drop by 98%. The sell-off continued the next day, causing another 99% decline. In addition, $263,000 and $174,000 were reportedly held in a marketing and treasury wallet, meaning over $1.4 million was kept across three wallets before the alleged scam. The project's X account, along with its Telegram group and documents, have been removed. The incident is part of a worrying trend in 2024, with over $200 million lost to crypto scams and hacks already.
According to blockchain security entity CertiK, the creators behind OrdiZK (OZK), a cross-chain bridging protocol, may have initiated an exit scam, absconding with cryptocurrencies valued at $1.4 million belonging to their investors. CertiK's notification indicates that 489 million OZK tokens were allegedly dumped via a decentralized exchange by the protocol's deploying account on March 4, resulting in $132,000 earned revenue but also a 98% drop in the token's value. The sell-off continued on March 5 with around $214,000 worth of OZK sold, triggering an additional decline of 99%.
Data from the blockchain confirms that the aforementioned activity led to roughly 489 million OZK tokens being exchanged for 35.65 Ether (ETH) on March 4. This was executed thanks to a deployed function on Uniswap’s Universal Router contract. Moreover, a further 121 million OZK tokens were exchanged the following day, resulting in 0.93 ETH being moved from Uniswap’s OZK/ETH liquidity pool into the deploying account.
There has also been a withdrawal of about 57.68 ETH (equivalent to around $197,000) from the OZK stake contract utilizing the emergency withdrawal function. CertiK includes in their report, mentioning an additional $263,000 in a marketing wallet and a further $174,000 in a treasury wallet. This suggests that more than $1.4 million was managed across these three wallets prior to the alleged exit scam culmination. Note that the project's X account has been subsequently deleted, along with all related Telegram group and documents.
Only mere months into 2024, and crypto scams and cyber-attacks have already claimed several hundreds of millions from their victims. Immunefi, blockchain security company, has identified over $200 million lost so far within the year due to these incidents. Shockingly, as early as February 26, gambling protocol RiskOnBlast became the first casualty on the new Blast network, suffering an exit scam that saw $1 million in investor funds disappear.
Published At
3/6/2024 1:31:35 AM
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