Ordinals Finance, an Ethereum-based decentralized finance (DeFi) protocol that allows users to lend and borrow inscriptions, has been accused of running an exit scam, also known as "rug pulling."
In an April 24 press release seen by Cointelegraph, blockchain security firm CertiK reported that the protocol developer mined 256 million Ordinals Finance (OFI) tokens from its smart contracts using a โsafuTokenโ function. Another 13 million OFIs were removed via an โowner withdrawalโ feature, bringing the total number of tokens withdrawn to 269 million, CertiK claimed.
We can confirm that the @ordinalsfinance Exit scam has resulted in a loss of $1 million.
All social media accounts have been removed, as well as the project website.
The funds have been consolidated in EOA 0x34eโฆ25cCFhttps://t.co/0Pwlt3yibm https://t.co/RA7vSjNajI
โ CertiK Alert (@CertiKAlert) April 24, 2023
According to the blockchain security firm, the total loss to investors is $1 million. Data from Coingecko shows OFI's market capitalization was $2.3 million before the alleged exit, but fell to just over $143,000 afterward. This implies that the losses were more than $2 million. However, some OFI token holders may have sold by the time the news broke, which may explain the lower number reported by CertiK.
Blockchain data shows that the Ordinals implementation account he retired more than 256 million OFI tokens using the safuToken function. These funds were allegedly sent to a separate Ethereum account through multiple transactions. Blockchain data shows that this address received OFI from multiple addresses before depositing the tokens into Tornado Cash.
The project's Twitter account appears to have been removed.
This is a developing story, and more information will be added as it becomes available.
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