Another DeFi exit scam just made off with $20M in investor funds

[Oshosondy]

"A new liquidity mining pool DeFi project, Yfdexf.Finance has exited the market after defrauding investors of $20 million in total funds locked in its protocol," media outlet ZyCrypto wrote on Sept. 10.

The project shilled its vaporware hard via Twitter and messaging apps such as Discord over the past 48 hours, ZyCrypto detailed. Cointelegraph tried tracking down details of the effort, but all traces of the scam appear to have been deleted at press time.

The DeFi space has moved incredibly fast in 2020, especially in recent weeks, with projects such as SushiSwap seeing millions of dollars in action only days after its launch. Some such projects, however, have proven to be problematic in a variety of ways.

https://cointelegraph.com/news/another-defi-exit-scam-just-made-off-with-20m-in-investor-funds

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[meanwords]

Now this is where it starts. Just like how the ICO hype was in 2017. People will keep investing into DeFi projects because its trending while scammers will take advantage of this and exit the market if they found the chance. This year really is becoming like 2017 minus the pandemic.

[taguig]

One after the other, DeFi are all messed up now, it's been a very hard month for the community we seen Bitcoin crashing from $12 k to $10 k and we have seen so many scam DeFi running away with millions worth of dollars, this has to end, but there are going to be legit
projects on DeFi that will suffer because of this, this is really not good for the community.

[makishart]

Hell yeah... investors must learn a lot from this case and they should never try to invest in the shit scam defi anymore. That's enough for this trend and as far as i know if yfdex never tried to publish the smartcontract or try to verify it on etherscan. WTF was wrong with the investors these days?

Oh good thousand investors were getting scammed. No more investing in the defi scam.

It's quite difficult to trace this scammer too.

[BuxCoin]

"A new liquidity mining pool DeFi project, Yfdexf.Finance has exited the market after defrauding investors of $20 million in total funds locked in its protocol," media outlet ZyCrypto wrote on Sept. 10.

The project shilled its vaporware hard via Twitter and messaging apps such as Discord over the past 48 hours, ZyCrypto detailed. Cointelegraph tried tracking down details of the effort, but all traces of the scam appear to have been deleted at press time.

The DeFi space has moved incredibly fast in 2020, especially in recent weeks, with projects such as SushiSwap seeing millions of dollars in action only days after its launch. Some such projects, however, have proven to be problematic in a variety of ways.

https://cointelegraph.com/news/another-defi-exit-scam-just-made-off-with-20m-in-investor-funds

Every one wants to get rich faster and they choose crypto as a gambling, its the same old thing repeating like in 2017-2018 launching new projects and pump n dump
and there are more than 60-70% of newbies who wont research and start to invest and this days its DEFI DEFI everywhere, everyone need to be looking for which is legit and which is not

[lepbagong]

actually it must be admitted that all systems are made for the purpose of improvement from time to time which may not develop, (for example ICO to IEO) but seeing the experience that has occurred, even though all systems look good, of course, need to be suspected behind everything that works. because many greedy people are still hanging around looking for opportunities from new programs that seem good. I haven't and can't really believe anything that is displayed because the characters behind it are still the same.

[kayvie]

Just like what we expected, this is the same scenario as what happened in the past in ICOs. At first, it becomes the trend and after it gets the trust of the investors and make enough money, they will make a way to do an exit scam. History does repeat itself, investors should learn from this experience since this might get worst than what we expected.

[bitkanu]

exactly what gonna happen when you got a bunch of random devs that comes out of nowhere. The scammers will definitely destroy this Defi thing just like how they destroyed ICO back in the days. One most important thing that I've learnt from these many scam cases is that doesn't matter how good the project in paper, how decentralized it is, if the project seems a bit random people better stay away because there's something bad waiting ahead. It's really unfortunate that DeFi is not even here for that long and scammers already swarming.

[JeffBrad12]

The scammer has already gone with all of the money. As far as i know if they have gone with around 28 million dollars based on some calculation that has already made by someone who has become the victim of this scam project. '

The traders and investors who have invested in this scam project are still tracing where the money gone. The scammers have already moved all of the money.

Someone has already made a new group to trace and discuss the yfdex scam project too. https://t.me/yfdex

From what i have seen before it the site that has already created looked like legit platform but that's a trick. IDK which was true about the total money that has already stolen by the scammer because some media said if that was around 20m but some people are saying if that was 28 million. I thought that if could be more than 20 million.

[AmoreJaz]

Just like what we expected, this is the same scenario as what happened in the past in ICOs. At first, it becomes the trend and after it gets the trust of the investors and make enough money, they will make a way to do an exit scam. History does repeat itself, investors should learn from this experience since this might get worst than what we expected.

people never really learn their lesson well. the name itself is clear imitation of the original project year.finance. but this project itself has no active use case and yet they are enjoying the high price in the market. DeFis are currently the cash cow of these scammers and these naive investors are still believing their crap!
 how many DeFis are they going to send their money before they realised this is another big blunder in crypto history?

[livingfree]

The DeFi space has moved incredibly fast in 2020, especially in recent weeks, with projects such as SushiSwap seeing millions of dollars in action only days after its launch. Some such projects, however, have proven to be problematic in a variety of ways.

They've moved so quickly but they'll also be gone that rapidly.

Whatever is the effect, there will be an opposite reaction for it. The hype for Defi is enormous and looks unstoppable but it won't be like that anymore for the next upcoming months.

Investors will learn from those dumps brought by hype.

[Princejebs]

It always sadden me when I see this kind of news. How can you see a hole and decide to jump 8n when you don't know what is exactly inside. Anonymous team will continue to cash out with this hot Defi trend until it die down. The gullible fellows will never learn.
I will rather put my faith on Ethereum and BTCitcoin with my arms fold for good return than invest on this shitcoins

[semobo]

What is the status of Uniswap at the moment, few weeks ago it passed 250 millions in a day but for sure it will be dumped into half because of the two recent biggest scams of Defi market.When these stupid people going to learn to stay away from these scammers?

[cabron]

The Cointelegraph page is saying 404 error, any one can confirm it to their end too?

404 Sorry, the page you are looking for has not been found. Try checking the URL for errors and hit refresh button in your browser.

It looks like they have deleted the article and if so then its probably a mistake. But it shouldn't come as a surprise now that exiting projects are happening. Its been around even before DEFI. With $20M, its a huge amount already to survive and live wealthy after the pandemic/

[ethereumhunter]

Behind the defi project, there will be a scam defi project that will run away with the people's money, and finally, it happens. People need to learn for that not to invest in the project that we don't know much. It is like what we saw before in ICO, which many investors invest in many ICO project, but they don't learn details about the project. So when the project becomes a scam, they are regret because they already give their money to the project. Many defi projects will scam you if you don't research the project.

[Fivestar4everMVP]

Only God can save this world from the hands of scammers and fraudsters, it's looks like the whole world is been controlled by scammers and fraudsters, and this is very bad, people are definitely capable of unimaginable things, this is why so many are afraid of investing their money this days most especially in crypto cus a project that looks all good and promising today might just turn scam tomorrow.

[robelneo]

The lesson here is to not be overconfident on the project you are investing, just because you saw the word DeFi staking and loan, there's a lot on it than what you think these DeFi's are running on a smart contract that triggers an action every time it met a certain condition, it's not a remote possibility that there is a trigger there than transfer all the funds to other wallets, I've seen this happen in so many Ponzi schemes on Tron where a back door was created to transfer all funds, so only invest on a smart contract that is certified and audited for your protection.  

[Beparanf]

It's sad that the good intention and useful ideas brought by DeFi project is being messed up by this scammers. It will be good if there will be a application for those projects that needs to be predetermined before they will be able to create or run a project wherein they will be test and with rules or contract to avoid exit scams, the hype will ends as well the market will receive more negative feedback once the scam events continues.

[BTCBusinessConsult]

Sad to see people getting ripped off, but when you "invest" in highly speculative, unaudited, risky things... this is what happens. I have been playing some DEFI but not alot, just too much risk. I prefer less risk, such as trading smart options on Spectre.ai and getting my weekly eth payouts from their business revenues 

[goinmerry]

As usual, there are good and bad ICOs while there are good and bad DeFi projects too.

A scam like this can't be avoided. Hype really can create a positive thought about the said project. Even for those who are aware that eventually, they might face a big problem in the future, there will be people that will keep investing on a hype project.

Congratulation to those who able to ride and makes a profit. While on the other hand, feel sorry for those who lead to FOMO and never able to recover their losses.