The SolPAD Foundation will refund the remaining 60% of the acquired token. The protocol confirms that it considers the scammed funds to be lost.
The team in charge of the decentralized financial protocol Luna Yield has allegedly abandoned the project taking more than USD 7 million in assets. DeFi launched on SolPAD, Solana’s multi-chain launchpad; it saw its release on August 16.
Both the Luna Yield website and its social networks faced a removal. Everything seems to indicate that it is a new case of rug pull or “carpet pull” and later an exit scam known as an exit scam.
A carpet pull in Defi platforms (decentralized finance, for its acronym in English) means that there is a massive withdrawal of tokens from liquidity pools and their sale, which cause them to lose their current price. This situation leaves those users who have tokens in wallets or smart contracts without any chance to dispose of them.
An exit scam happens when everyone responsible for a platform vanishes from the scenario along with the money of their victims.
The event became real through an announcement by SolPAD on their social network, Twitter. Through social media, they claimed that the Luna Yield team had not had the opportunity to establish communication and confirmed that the funds got withdrawn.
The platform also clarified that once it noticed what was going on, they tried to trace all the addresses that belong to the Luna Yield team, along with their IP address, but it was impossible to find their whereabouts.
The platform seems to have already deleted all their messages, conversations, vital data, and then proceeded to successfully transfer all funds from SOL to ether via Tornado.cash [decentralized protocol for private transactions on Ethereum] to avoid tracking.
Luna Yield claimed to follow the mission of providing better performance and experiences to DeFi users. Luna Yield’s items focused on bringing excellent security, performance, and user experience to the DeFi space, as they had described before.
More than USD 6 million in different assets vanished
As the specialized medium, CoinDesk reported, the people in charge of Luna Yield would have made more than USD 6 million in various assets vanish from the marketplace.
Among the missing currencies are Solana’s native currency (SOL), ether (ETH), USD Tether (USDT), USD Coin (USDC), and Yearn Finance (YFI).
Compensation for Luna Yield users
Regarding compensation, SolPAD clarified that most of its users received good profits with the price of their tokens, although other users did not have the same luck.
The entity reported that they would reimburse 60% of what the participants of the IDO Luna Yield have bought. The money will arrive from the emergency funds of the SolPAD Foundation.
The company also highlighted that they would not recover the funds. So they would compensate their IDO buyers in SolPAD, based on the remaining allocations of the remaining vested Luna Yield tokens.
By: Jenson Nuñez
