View source for SwapRum Rug Pull

{{Case Study Under Construction}}{{Unattributed Sources}}

[[File:Swaprum.jpg|thumb|SwapRum Website]]SwapRum Finance offered a next generation decentralized exchange. They obtained an audit from CertiK but only partially resolved some of the issues in their project. Then they used one of those issues to execute a rug pull and withdraw all funds form the liquidity pool, which were then brought out through TornadoCash.

This is a global/international case not involving a specific country.<ref name="slowmisthackedarchive-10953" /><ref name="hackenclubtwitterarchive-10954" /><ref name="hackenclubtwitter-10955" /><ref name="arbiscan-10956" /><ref name="sebasti04989541twitter-10957" /><ref name="cryptoemprendetwitter-10958" /><ref name="lucas75831804twitter-10959" /><ref name="anciliainctwitter-10960" /><ref name="jessiedegenstwitter-10961" /><ref name="metasleuthtwitter-10962" /><ref name="damicalestwitter-10963" /><ref name="martiniguyyttwitter-10964" /><ref name="peckshieldalerttwitter-10965" /><ref name="damicalestwitter-10966" /><ref name="dedotfisecuritytwitter-10967" /><ref name="theblocktwitter-10968" /><ref name="musiclo62847240twitter-10969" />

== About SwapRum ==
"Next Generation Decentralized Exchange"

"Swaprum is a next-generation decentralized exchange with a range of trading tools and potential earnings of up to 100% APY. Explore limitless possibilities in the world of DeFi with Swaprum."


The Swaprum application was promoted as a way that one could obtain free Arbitrum tokens<ref name="aryobagas9twitter-11012" />.<blockquote>Claim Tokens For Free

Free ARB tokens for everyone

Join Swaprum Free Pool and get free ARB tokens every day! Become a part of the platform's community and earn cool rewards with your friends. Read the detailed terms below.</blockquote>

"Swaprum (@Swaprum) on Arbitrum rugged by its founders for ~$3M"

"The deployer of Swaprum utilized a backdoor function, add(), to steal LP tokens staked by users

Following the theft, liquidity was swiftly stolen from the pool by the deployer"

"Then, the deployer of Swaprum transferred all the funds to Ethereum network using cross chain bridges such as @MultichainOrg, @AcrossProtocol, and @CelerNetwork. After successfully bridging 1620 $ETH through these platforms, he funneled it into @TornadoCash."

"At this time @Swaprum has deleted all their social media accounts and groups."

"As a result of this rugpull, the token $SAPR has plummeted by 100%. The scammers managed to escape with approximately 1,628 ETH, equivalent to around $2.95 million."

"CertiK AGAIN!
Why in the hell are these degens giving such "projects" money?
It's frustrating to see all these scammers since 2010, hello braincell."

This is a global/international case not involving a specific country.

The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.

Include:

* Known history of when and how the service was started.
* What problems does the company or service claim to solve?
* What marketing materials were used by the firm or business?
* Audits performed, and excerpts that may have been included.
* Business registration documents shown (fake or legitimate).
* How were people recruited to participate?
* Public warnings and announcements prior to the event.

Don't Include:
* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
* Anything that wasn't reasonably knowable at the time of the event.
There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.


The interface provided users with a balance in ARB, and claimed that withdrawals would be processed after 0.5 ARB were accumulated<ref name="sanjeev08818841twitter-11025" /><ref name="blmcryptotwitter-11018" />.

Multiple users on Twitter expressed support and excitement for the project<ref name="parhan235twitter-11021" /><ref name="aloponaftwitter-11007" /><ref name="brahmi1973twitter-10989" />, while others helped to promote it<ref name="blmcryptotwitter-11018" /><ref name="datedata51twitter-11010" /><ref name="alabasimamountwitter-10988" />. In fact, it was reported that the Telegram account of the project was full<ref name="ayodelesammyleetwitter-11014" />.

<blockquote>good project...and good investasi.....bravo @Swaprum</blockquote><blockquote>Good project And the second draw but mining has stopped</blockquote>

== The Reality ==
This sections is included if a case involved deception or information that was unknown at the time. Examples include:

* When the service was actually started (if different than the "official story").
* Who actually ran a service and their own personal history.
* How the service was structured behind the scenes. (For example, there was no "trading bot".)
* Details of what audits reported and how vulnerabilities were missed during auditing.

=== Limitations of Interface ===
There were multiple reports prior to the rug pull of issues with the provided Swaprum interface<ref name="khuongeyelesstwitter-11031" /><ref name="sanjeev08818841twitter-11025" />, including failures to load the website<ref name="aryobagas9twitter-11012" /> and a reported inability to withdraw funds<ref name="ayodelesammyleetwitter-11014" /><ref name="mohsencngtwitter-11028" /><ref name="hayatkhan6931twitter-11016" /><ref name="dariush72249709twitter-11008" /><ref name="djkhileshrajtwitter-10996" />.<blockquote>Why does the claim not accumulate in the balance section?</blockquote><blockquote>Why hasn't the token been deposited into my wallet after a few days of requesting a withdrawal?</blockquote><blockquote>I want you to help, even in withdrawing, there is a pending order.</blockquote>

=== Warnings About Scam ===
Several users warned about the potential that this project may be a scam<ref name="dariush72249709twitter-11008" /><ref name="lun68251148twitter-10994" /><ref name="damicalestwitter-10983" />.<blockquote>Bro dont pay scam site withdrawal transaction dont work 100% scam</blockquote><blockquote>you will regret when you deposit money into a project that smells like a scam</blockquote>

== What Happened ==
The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.
{| class="wikitable"
|+Key Event Timeline - SwapRum Rug Pull
!Date
!Event
!Description
|-
|May 17th, 2023 10:44:00 AM MDT
|Telegram Reportedly Full
|Twitter user AyodeleSammylee reports that the Telegram account of the Swaprum project is full. The majority of messages visible appear to be users attempting to withdraw their funds<ref name="ayodelesammyleetwitter-11014" />.
|-
|
|
|
|-
|May 17th, 2023 3:45:00 PM MDT
|Website Bad Request Reported
|Twitter user Aryo Bagas reports that the mobile application is giving a "Error Bad request, check internet" code<ref name="aryobagas9twitter-11012" />.
|-
|May 17th, 2023 3:47:00 PM MDT
|Waleed Mahmoud Reports Issue
|Twitter user Waleed Mahmoud reports that the site is no longer working for them as well, with a screenshot<ref name="waleedmahmoud99twitter-10976" />.
|-
|May 17th, 2023 7:52:00 PM MDT
|
|
|-
|May 17th, 2023 8:51:00 PM MDT
|Saito Pick News Promotion
|The Twitter account saito_pickNEWS promotes the project based on the 1000% return and provides instructions of how to participate<ref name="saitopicknewstwitter-10970" />.
|-
|May 17th, 2023 11:15:00 PM MDT
|Warning From Damicale
|<ref>https://twitter.com/Damicale_s/status/1659065101004029958 (May 30, 2023)</ref>
|-
|May 18th, 2023 9:52:12 AM MDT
|Liquidity Drained
|Transaction to drain liquidity.
|-
|May 18th, 2023 12:39:00 PM MDT
|junyachao1999 Reports Loss
|Twitter use junyachao1999 reports losing $3600<ref name="jinyachao1999twitter-10971" />. TBD follow warning Tweet references.
|-
|May 18th, 2023 4:36:00 PM MDT
|taka__crypto Tweet Posted
|Twitter user taka__crypto reports on the incident in Japanese. "Swaprum, who was air-dropping amazing APR and ARB, made a lag pull. Twitter has also been deleted."<ref name="takacryptotwitter-10972" />
|-
|May 18th, 2023 6:59:00 PM MDT
|MoffMoff Tweet
|Twitter user MoffMoff exclaims "Wow rug rug rug!!!" and reports that Swaprum "closed their Twitter account"
and "one of [their] friend said he couldn't withdraw his money on it"<ref name="moffcointwitter-10974" />.
|-
|May 18th, 2023 9:48:00 PM MDT
|PeckShield Alert Triggered
|A PeckShield alert is triggered. The alerts is retweeted by the Web3 Watchdog<ref name="web3watchdogtwitter-11020" /> and pSquare_Daily<ref name="psquaredailytwitter-11019" />. TBD get actual alert.
|-
|May 19th, 2023 12:05:00 AM MDT
|Twitter Account Deactivation
|It's reported that Swaprum Finance has deactivated their Twitter account<ref name="lamarziaatwitter-11027" />.
|-
|May 19th, 2023 12:06:00 AM MDT
|Cyvers Alerts For Rug Pull
|Cyvers Alerts reports the rug pull mint and that the Twitter account has been deleted<ref name="cyversalertstwitter-10980" />. TBD more analysis of CyversAlerts
|-
|May 19th, 2023 12:13:00 AM MDT
|Cyvers Alerts For Funds Transfered
|Crvers Alerts reports that the funds have moved in the blockchain<ref name="cyversalertstwitter-10997" /> along with the attacker's address<ref name=":0">[https://etherscan.io/address/0xaaf8b44376f4ef3ed477eeeb3553b7623fef5e1c Swaprum Rug Pull Attacker's Address - Etherscan] (May 29, 2023)</ref>.
|-
|May 19th, 2023 12:16:00 AM MDT
|Hunter Shanno Tweet
|Hunter Shanno reports on the exploit, stating that "[i]t hasn't been scammed so beautifully for a long time" and that "[t]he developers took about 10k ETH (M$18)"<ref name="huntershannohstwitter-10973" />.
|-
|May 19th, 2023 12:22:00 AM MDT
|ChainAegis Reports Rug Pull
|A ChainAegis alert is generated on Twitter to report on the rug pull<ref name="chainaegistwitter-11006" />.
|-
|May 19th, 2023 2:10:00 AM MDT
|Blin Analytics Report
|Blin Analytics reports on the situation on Twitter<ref name="blinanalyticstwitter-11013" />.
|-
|May 19th, 2023 2:29:00 AM MDT
|Sending Messages Blocked
|It's reported on Twitter that sending messages within the Swaprum Telegram group is no longer possible<ref name="yunasmftwitter-10998" />.
|-
|May 19th, 2023 2:53:00 AM MDT
|Beosin Alert Published
|Beosin publishes an alert on Twitter about the situation<ref name="beosinalerttwitter-11009" />.
|-
|May 19th, 2023 4:01:00 AM MDT
|Hacken Report on Twitter
|Describe the event. The Hacken report is later referenced by Gagarin News<ref name="newsgagarintwitter-11002" />.
|-
|May 19th, 2023 4:36:00 AM MDT
|The Block Article
|The Block publishes an article on the situation<ref name="theblock-11033" />. TBD get summary. This is crossposted by Token Metrics<ref name="tokenmetricsinctwitter-11015" /> and CryptoPanic/CryptaiaTech<ref name="cryptaiatechtwitter-11000" />.
|-
|May 19th, 2023 4:56:00 AM MDT
|Because Bitcoin Article
|The Because Bitcoin shares the breaking news<ref name="becausebitcointwitter-11001" />, and later links to an article they wrote on the situation, which includes a full screenshot of what the Swaprum website looked like when it was operating<ref>[https://twitter.com/BecauseBitcoin/status/1659526966372868097 BecauseBitcoin - "Read the full article here" - Twitter] (May 19, 2023)</ref><ref>[https://www.becausebitcoin.com/post/swaprum-dex-team-vanishes-in-apparent-usd3-million-exit-scam-on-arbitrum-network Swaprum DEX Team Vanishes in Apparent $3 Million Exit Scam on Arbitrum Network - BecauseBitcoin] (May 29, 2023)</ref>.
|-
|May 19th, 2023 5:17:00 AM MDT
|Numen Cyber Analysis Published
|Numen Cyber publishes an analysis of the events in Twitter<ref name="numencybertwitter-10991" />.
|-
|May 19th, 2023 5:25:00 AM MDT
|Perseus Crypto News Article
|Perseus Crypto publishes a news article on the situation<ref name="perseuscryptotwitter-10999" /><ref>[https://perseuscrypto.com/cryptocurrency/swaprum-dex-allegedly-executes-3-million-exit-scam-on-arbitrum-network/ Swaprum DEX Allegedly Executes $3 Million Exit Scam on Arbitrum Network - Perseus Crypto News] (May 29, 2023)</ref>.
|-
|May 19th, 2023 5:45:00 AM MDT
|Whale Coin Talk Tweet
|Twitter account Whale Coin Talk posts a summary of the exploit, reporting that the Swaprum team disappeared with $3m USD from 1,628 ETH<ref name="whalecointalktwitter-10975" />.
|-
|May 19th, 2023 6:20:00 AM MDT
|CryptoPolitan Article
|Crossposted by Daily Web3 News<ref name="dailynewsweb3twitter-11011" />.
|-
|May 19th, 2023 7:46:00 AM MDT
|Swaprum Adding Liquidity
|A Twitter post claims that the Swaprum project is adding liquidity<ref name="0xepicatwitter-10993" />. TBD explain this in the context - the project already rugged?
|-
|May 19th, 2023 8:11:00 AM MDT
|Majed Summary Published
|Twitter user Majed Maddev reports on the Swaprum exit scam<ref name="majedmaddevtwitter-11003" />.
|-
|May 19th, 2023 9:01:00 AM MDT
|Wisper Crypto Summary Published
|Wisper Crypto publishes a summary on Twitter<ref name="jurangcryptotwitter-11005" />.
|-
|May 19th, 2023 10:17:00 AM MDT
|Crypto Potato Article
|Crypto Potato published an article about the situation<ref name="cryptopotatotwitter-10986" /><ref>[https://cryptopotato.com/swaprum-dex-drained-in-3m-crypto-rugpull/ Swaprum DEX Drained in $3M Crypto Rugpull - Crypto Potato] (May 30, 2023)</ref>. TBD fill in more details.
|-
|May 19th, 2023 10:34:00 AM MDT
|Crypto Purity Article
|Crypto Purity reports on the situation<ref name="thecryptopuritytwitter-11030" />. TBD more summary<ref>[https://www.cryptopurity.com/3-million-crypto-rugpull-drains-swaprum-dex/ $3 million Crypto Rugpull Drains Swaprum DEX - Crypto Purity] (May 24, 2023)</ref>.
|}

== Technical Details ==
This section includes specific detailed technical analysis of any security breaches which happened. What specific software vulnerabilities contributed to the problem and how were they exploited?

<ref name="skynet-11032" />

Attacker's Address: <ref name=":0" />

=== Cyvers Alerts Analysis ===
An analysis was shared by Cyvers Alerts through a series of tweets<ref name="cyversalertstwitter-10980" /><ref name="cyversalertstwitter-10997" />.<blockquote>RUGPULL Dev exploits @swaprum by creating a fresh token contract for #Swaprum  Token, resulting in a massive $1M rug pull. This enabled the minting of 200,000,000 $SAPR tokens.️ Moreover, @Swaprum's Twitter profile has mysteriously vanished. Stay vigilant!

$241,000 worth of assets were affected. USDT/WETH pool USDT/USDC pool $280,000. ARB/WETH pool - $280,000, ARB/USDC pool - $126,000, WOM/USDT pool - $49,000,

8 days ago, the scammer minted a staggering 800,000 $SAPR tokens from the multisig wallet.

In another move, the scammer took a direct step and removed liquidity from the SAPR/WETH pool, acquiring 500,000 $SAPR tokens and $94,000 worth of $WETH.

Scammer successfully exploited SAPR Controller Proxy, generating a staggering 200,000,000 $SAPR tokens in just two transactions.

In a final blow, the scammer emptied the SAPR/WETH pool using the $SAPR tokens.</blockquote>

=== Beosin Alert Analysis ===
Beosin published an alert about the situation on Twitter<ref name="beosinalerttwitter-11009" />.<blockquote>Swaprum on Arbitrum rugged for ~$3M.

The deployer of Swaprum used the add() backdoor function to steal LP tokens staked by users, then removed liquidity from the pool for profit.

2/ The project has upgraded the the normal liquidity collateral reward contract to a contract containing backdoor functions.

3/ The backdoor function add() will transfer LP tokens from the contract to the _devadd address. By querying the _devadd address, it will return the ‘Swaprum:Deployer’ address.

4/ The Swaprum: Deployer uses the stolen LP tokens in the previous step to remove liquidity.

1,620 $ETH has already sent to Tornado Cash.</blockquote>

=== Numen Cyber Summary ===
Numen Cyber shared a summary on Twitter<ref name="numencybertwitter-10991" />. They also provided the scammer's address<ref>[https://arbiscan.io/address/0xf2744e1fe488748e6a550677670265f664d96627 Scammer's Address - Arbiscan] (May 30, 2023)</ref> and fund transfer address<ref name=":0" />.<blockquote>#Arbitrum's Swaprum was rugged by its team for 1,629 $ETH (~$2.95mil)

The token $SAPR has plummeted by 100%

Swaprum has also deleted all its social media accounts

The scammer has transferred all the $ETH to #Ethereum & moved it to [TornadoCash].</blockquote>

=== WisperCrypto Summary ===
WisperCrypto published a summary of the situation<ref name="jurangcryptotwitter-11005" />.<blockquote>Breaking News!

#Swaprum DEX On #Arbitrum Rug Pulls $3M, SAPR Token Crashes 100%

In a shocking turn of events, the decentralized exchange #Swaprum operating on Ethereum Layer 2 network #Arbitrum has orchestrated a treacherous exit scam, leaving users devastated and questioning the safety of the crypto industry.

The Swaprum team slyly removed the liquidity tied to their native coin, SAPR, causing a significant drop in its price. Unsuspecting investors were left holding worthless tokens, resulting in a loss of approximately 1,628 ETH ($3M) in user deposits.

To further obfuscate the stolen funds, the Swaprum team transferred them to Ethereum and employed the notorious ETH mixer service Tornado Cash. This service masks the transaction trail, making it difficult for authorities to trace the flow of funds

The deceitful team swiftly deleted their social media presence on Twitter, Telegram, and GitHub, leaving users without any means of contact. However, the project's official website, which served as the interface for the protocol, is still accessible.

Subsequent investigations by Beosin's security analysts revealed that Swaprum's smart contract contained a covert backdoor mechanism, raising concerns about the project's intentions from the start.

This incident adds to the growing list of crypto scams, highlighting the urgent need for increased security and regulation within the industry. Investors must remain vigilant and exercise caution when engaging with decentralized platforms.</blockquote>

== Total Amount Lost ==

<ref name="whalecointalktwitter-10975" />

The total amount lost has been estimated at $2,950,000 USD.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

Hunter Shanno reporting $18M lost <ref name="huntershannohstwitter-10973" />.

=== Cyvers Alerts Analysis ===
The Cyvers Alerts team published their analysis of the loss as:

* USDT/WETH ($241k)<ref name=":1">[https://twitter.com/CyversAlerts/status/1659440416364670978 CyversAlerts - "$241,000 worth of assets were affected. USDT/WETH pool USDT/USDC pool $280,000." - Twitter] (May 29, 2023)</ref>
* USDT/USDC ($280k)<ref name=":1">[https://twitter.com/CyversAlerts/status/1659440416364670978 CyversAlerts - "$241,000 worth of assets were affected. USDT/WETH pool USDT/USDC pool $280,000." - Twitter] (May 29, 2023)</ref><ref>[https://arbiscan.io/tx/0xcb64a40d652ff8bfac2e08aa6425ace9c19f0eeb4a6e32f0c425f9f9ea747edf Transaction Emptying The USDT/USDC Pool - Arbiscan] (May 29, 2023)</ref>
* ARB/WETH ($280k)<ref name=":2">[https://twitter.com/CyversAlerts/status/1659440418583445507 CyversAlerts - "ARB/WETH pool - $280,000, ARB/USDC pool - $126,000, WOM/USDT pool - $49,000," - Twitter] (May 29, 2023)</ref><ref>[https://arbiscan.io/tx/0x45b911b9048687e893a3794ef8ef1091469a10a870249b52bc36c9d2dcd081d0 Transaction Emptying The ARB/WETH Pool - Arbiscan] (May 29, 2023)</ref>
* ARB/USDC ($126k)<ref name=":2">[https://twitter.com/CyversAlerts/status/1659440418583445507 CyversAlerts - "ARB/WETH pool - $280,000, ARB/USDC pool - $126,000, WOM/USDT pool - $49,000," - Twitter] (May 29, 2023)</ref><ref>[https://arbiscan.io/tx/0x33020fdf7cc5f0c7e1f1a46243ff1c47da86cb2bfa644c227e7b7a100c74796a Transaction Emptying The ARB/USDC Pool - Arbiscan] (May 29, 2023)</ref>
* WOM/USDT ($49k)<ref name=":2">[https://twitter.com/CyversAlerts/status/1659440418583445507 CyversAlerts - "ARB/WETH pool - $280,000, ARB/USDC pool - $126,000, WOM/USDT pool - $49,000," - Twitter] (May 29, 2023)</ref><ref>[https://arbiscan.io/tx/0xcf41297eb598a81d238a55471fe54286efcda610004b19b021917fdd9954255a Transaction Emptying The WOM/USDT Pool - Arbiscan] (May 29, 2023)</ref>
* SAPR/WETH ($94k)<ref>[https://twitter.com/CyversAlerts/status/1659440423058776064 CyversAlerts - "In another move, the scammer took a direct step and removed liquidity from the SAPR/WETH pool, acquiring 500,000 $SAPR tokens and $94,000 worth of $WETH." - Twitter] (May 29, 2023)</ref><ref>[https://arbiscan.io/tx/0x9d66bda06e8b5135c363f2d9f78f2d51139fa3f423e1646980a2eb11f33662b1 Transaction Emptying The SAPR/WETH Pool - Arbiscan] (May 29, 2023)</ref>

These add up to a total of $1070k.

== Immediate Reactions ==
How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?

=== Reactions on Twitter ===
The news was widely reported on Twitter<ref name="huntershannohstwitter-10973" /><ref name="moffcointwitter-10974" /><ref name="lamarziaatwitter-11027" /><ref name="beyondkartotwitter-11023" /><ref name="web3wisertwitter-11017" /><ref name="winnerilltwitter-11026" /><ref name="beyondbitcoin1twitter-11029" /><ref name="defivisionarytwitter-11024" /><ref name="kirill186186twitter-11022" /><ref>[https://twitter.com/rotcivegaf/status/1660032640332832768 Rotciv - "A week ago I reported a bug, which they never paid for, it was obvious from afar that it was a trap.  the truth is that they made a well-organized trap" - Twitter] (May 25, 2023)</ref><ref>[https://twitter.com/Ero___Gamer/status/1659759290922483717 Rean Schwarzer - "I know from the start Swaprum was a scam project just after visiting their token page on @CoinMarketCap since it clearly had a warning sign of a rugged token. Ironically I joined their group to get free ARB but after I posted about their token they kicked me out lol." - Twitter] (May 25, 2023)</ref><ref name="koinbultwitter-10992" /><ref name="mnathu0105twitter-10990" /><ref name="esatoshiclubtwitter-10987" /><ref name="mueb2ethtwitter-10985" /><ref name="vadymnikolskyi1twitter-10984" /><ref name="cryptokeretwitter-10982" /><ref name="cryptosavingexptwitter-10981" />.<blockquote>
Wow rug rug rug!!! Swaprum(@Swaprum) who did aridrop recently with high APR pool...they run away... closed their Twitter account.. one of my friend said he couldn't withdraw his money on it... OMG</blockquote>
<blockquote>
Swaprum - GG WP

The project which handed out $ARB scammed. I hope you didn't stake money there.

I advise you to untie wallets and make revoke if you interacted with it.

It hasn't been scammed so beautifully for a long time. The developers took about 10k ETH (M$18)</blockquote><blockquote>swaprum finance deactivate their twitter account?</blockquote><blockquote>Important Alert! Crypto traders, beware! Swaprum, an exchange on Arbitrum network, has been exposed as a decentralized scam. The team behind it has shamelessly withdrawn approximately $3 million from customer deposits </blockquote><blockquote>Breaking: Swaprum #DEX On #Arbitrum Rug Pulls $3M, SAPR Token Crashes 100%</blockquote><blockquote>Just got rugged on Swaprum. Site and discord is still up. A lot of work for 1 million</blockquote><blockquote>JUST IN: Swaprum, a decentralized exchange (DEX) built on @arbitrum ruggpulls with $3 million users deposit.  According to blockchain security firm PeckShield, the team has already laundered part of the funds on Tornado Cash.</blockquote><blockquote>The #Swaprum rug pull has left investors devastated with a jaw-dropping $3 million loss in this #defi scam. As a social media marketer, I urge everyone to stay vigilant while investing in the crypto market. Like and retweet to spread the word!</blockquote><blockquote>@Swaprum he deceived us all, we fulfilled all the conditions, but they threw us .. do not believe this is ophirists</blockquote><blockquote>A week ago I reported a bug, which they never paid for, it was obvious from afar that it was a trap.  the truth is that they made a well-organized trap</blockquote><blockquote>I know from the start Swaprum was a scam project just after visiting their token page on @CoinMarketCap since it clearly had a warning sign of a rugged token. Ironically I joined their group to get free ARB but after I posted about their token they kicked me out lol.</blockquote><blockquote>I did not withdraw my airdrop earnings on #Swaprum I also bought $SAPR with 0.01eth and added, but my withdrawal request does not occur on the gas-sufficient leg and I noticed that the value of the $SAPR token has also decreased. His Twitter account has also been disabled. Guess we got scammed</blockquote>

=== Backlash Against CertiK Auditor ===
There was considerable backlash against CertiK for approving the team's smart contract<ref name="juanpmarintwitter-11004" /><ref name="rnsahintwitter-10979" /><ref name="mtomczakorgtwitter-10978" /><ref name="marcink88twitter-10977" />.<blockquote>Wtf @CertiK ? Did they bought the audit?</blockquote><blockquote>it seems @swaprum has rugpulled! there is a certik audit on their site! ty...</blockquote><blockquote>It seems that project #Swaprum tricked us and just made a rugpull.

Personally, I'm devastated because I put some in there. In addition, the project passed a positive audit @CertiK (they are probably worthless now) and really looked legit.</blockquote>

== Ultimate Outcome ==
What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

=== Audit Security Score Updated ===
The security score of the Swaprum project on CertiK was updated to "Exit Scam" status<ref name="skynet-11032" />.

== Total Amount Recovered ==
There do not appear to have been any funds recovered in this case.

What funds were recovered? What funds were reimbursed for those affected users?

== Ongoing Developments ==
What parts of this case are still remaining to be concluded?
== Individual Prevention Policies ==
{{Prevention:Individual:Avoid Using Smart Contracts}}

{{Prevention:Individuals:End}}

== Platform Prevention Policies ==
{{Prevention:Platforms:Regular Audit Procedures}}

{{Prevention:Platforms:End}}

== Regulatory Prevention Policies ==
{{Prevention:Regulators:Platform Security Assessments}}

{{Prevention:Regulators:End}}

== References ==
<references>
<ref name="slowmisthackedarchive-10953">[https://web.archive.org/web/20230519161338/https://hacked.slowmist.io/en/ SlowMist Hacked - SlowMist Zone] (May 19, 2023)</ref>
<ref name="hackenclubtwitterarchive-10954">[https://web.archive.org/web/20230519161338/https://twitter.com/hackenclub/status/1659499442041417729?s=46&t=DLwbX9Nw4QECiyZQ0av-fg @hackenclub Twitter] (May 19, 2023)</ref>
<ref name="hackenclubtwitter-10955">[https://twitter.com/hackenclub/status/1659499442041417729 @hackenclub Twitter] (May 19, 2023)</ref>
<ref name="arbiscan-10956">[https://arbiscan.io/tx/0x36fef881f7e9560db466a343e541072a31a07391bcd0b9bcdb6cfe8ae4616fc0 Arbitrum Transaction Hash (Txhash) Details | Arbiscan] (May 19, 2023)</ref>
<ref name="sebasti04989541twitter-10957">[https://twitter.com/Sebasti04989541/status/1659568232376811523 @Sebasti04989541 Twitter] (May 19, 2023)</ref>
<ref name="cryptoemprendetwitter-10958">[https://twitter.com/cryptoemprende_/status/1659228098427068417 @cryptoemprende_ Twitter] (May 19, 2023)</ref>
<ref name="lucas75831804twitter-10959">[https://twitter.com/Lucas75831804/status/1659297791150026778 @Lucas75831804 Twitter] (May 19, 2023)</ref>
<ref name="anciliainctwitter-10960">[https://twitter.com/AnciliaInc/status/1659422375111462912 @AnciliaInc Twitter] (May 19, 2023)</ref>
<ref name="jessiedegenstwitter-10961">[https://twitter.com/Jessiedegens/status/1659240821684568074 @Jessiedegens Twitter] (May 19, 2023)</ref>
<ref name="metasleuthtwitter-10962">[https://twitter.com/MetaSleuth/status/1659379410892640256 @MetaSleuth Twitter] (May 19, 2023)</ref>
<ref name="damicalestwitter-10963">[https://twitter.com/Damicale_s/status/1659065101004029958 @Damicale_s Twitter] (May 19, 2023)</ref>
<ref name="martiniguyyttwitter-10964">[https://twitter.com/MartiniGuyYT/status/1659552071178231811 @MartiniGuyYT Twitter] (May 19, 2023)</ref>
<ref name="peckshieldalerttwitter-10965">[https://twitter.com/PeckShieldAlert/status/1659404608685604864 @PeckShieldAlert Twitter] (May 19, 2023)</ref>
<ref name="damicalestwitter-10966">[https://twitter.com/Damicale_s/status/1659230458977058817 @Damicale_s Twitter] (May 19, 2023)</ref>
<ref name="dedotfisecuritytwitter-10967">[https://twitter.com/DeDotFiSecurity/status/1659271879889231880 @DeDotFiSecurity Twitter] (May 19, 2023)</ref>
<ref name="theblocktwitter-10968">[https://twitter.com/TheBlock__/status/1659508464886972416 @TheBlock__ Twitter] (May 19, 2023)</ref>
<ref name="musiclo62847240twitter-10969">[https://twitter.com/Musiclo62847240/status/1659047282753572871 @Musiclo62847240 Twitter] (May 19, 2023)</ref>
<ref name="saitopicknewstwitter-10970">[https://twitter.com/saito_pickNEWS/status/1659028976625655808 saito_pickNEWS - "Over 1,000% a year ! ? A magical world DeFi called “Swaprum” that hits out an ultra-high yield is born. Moreover, you can increase stability and ETH with high yield. If you haven't been able to check it out, let's take a quick look at the overview and how to use it" - Twitter] (May 19, 2023)</ref>
<ref name="jinyachao1999twitter-10971">[https://twitter.com/jinyachao1999/status/1659267480412626945 jinyachao1999 - "You are lucky. I was 10 minutes late and lost $3600" - Twitter] (May 19, 2023)</ref>
<ref name="takacryptotwitter-10972">[https://twitter.com/taka__crypto/status/1659327073159356417 taka__crypto - "Swaprum, who was air-dropping amazing APR and ARB, made a lag pull. Twitter has also been deleted." - Twitter] (May 19, 2023)</ref>
<ref name="huntershannohstwitter-10973">[https://twitter.com/huntershannoHS/status/1659442908099911685 Hunter Shanno - "The project which handed out $ARB scammed. I hope you didn't stake money there. I advise you to untie wallets and make revoke if you interacted with it. It hasn't been scammed so beautifully for a long time. The developers took about 10k ETH (M$18)" - Twitter] (May 19, 2023)</ref>
<ref name="moffcointwitter-10974">[https://twitter.com/moff_coin/status/1659363158321172480 moff_coin - "Wow rug rug rug!!! Swaprum(@Swaprum) who did aridrop recently with high APR pool...they run away... closed their Twitter account.. one of my friend said he couldn't withdraw his money on it... OMG" - Twitter] (May 19, 2023)</ref>
<ref name="whalecointalktwitter-10975">[https://twitter.com/WhaleCoinTalk/status/1659525625239990273 WhaleCoinTalk - "#Swaprum exchange team disappears with $3 million in apparent exit scam on Arbitrum network. On-chain analysis by #PeckShield found a deviation of around 1,628 #ETH from Swaprum's liquidity pools." - Twitter] (May 19, 2023)</ref>
<ref name="waleedmahmoud99twitter-10976">[https://twitter.com/waleedmahmoud99/status/1658952393302704130 Waleed Mahmoud - "The site has stopped" - Twitter] (May 19, 2023)</ref>
<ref name="marcink88twitter-10977">[https://twitter.com/Marcin_K88/status/1659230282564739072 Marcin_K88 - "@CertiK Did @Swaprum was just rugged and LP was stolen?" - Twitter] (May 19, 2023)</ref>
<ref name="mtomczakorgtwitter-10978">[https://twitter.com/MTomczak_org/status/1659241402662780944 MTomczak_org - "It seems that project #Swaprum tricked us and just made a rugpull. Personally, I'm devastated because I put some in there. In addition, the project passed a positive audit @CertiK (they are probably worthless now) and really looked legit." - Twitter] (May 19, 2023)</ref>
<ref name="rnsahintwitter-10979">[https://twitter.com/rnsahin/status/1659236449466679296 rnsahin - "it seems @swaprum has rugpulled! there is a certik audit on their site! ty..." - Twitter] (May 19, 2023)</ref>
<ref name="cyversalertstwitter-10980">[https://twitter.com/CyversAlerts/status/1659440413407694848 CyversAlerts - "RUGPULL Dev exploits @swaprum by creating a fresh token contract for #Swaprum  Token, resulting in a massive $1M rug pull. This enabled the minting of 200,000,000 $SAPR tokens.️ Moreover, @Swaprum's Twitter profile has mysteriously vanished." - Twitter] (May 19, 2023)</ref>
<ref name="cryptosavingexptwitter-10981">[https://twitter.com/CryptoSavingExp/status/1659544757624885254 CryptoSavingExp - "Arbitrum DEX #Swaprum rug pulls, drains $3m in liquidity Stay safe out there" - Twitter] (May 19, 2023)</ref>
<ref name="cryptokeretwitter-10982">[https://twitter.com/cryptokere/status/1659235089354563585 cryptokere - "@Swaprum is now gone, they run away with 1205 #ETH" -  Twitter] (May 19, 2023)</ref>
<ref name="damicalestwitter-10983">[https://twitter.com/Damicale_s/status/1659277889454370834 Damicale_s - "This morning I try to tell people stay away" - Twitter] (May 19, 2023)</ref>
<ref name="vadymnikolskyi1twitter-10984">[https://twitter.com/vadymnikolskyi1/status/1659120938678403073 vadymnikolskyi1 - "Why the eternal conclusion?" - Twitter] (May 19, 2023)</ref>
<ref name="mueb2ethtwitter-10985">[https://twitter.com/mueb2eth/status/1659241014144401412 mueb2eth - " did not withdraw my airdrop earnings on #Swaprum I also bought $SAPR with 0.01eth and added, but my withdrawal request does not occur on the gas-sufficient leg and I noticed that the value of the $SAPR token has also decreased. His Twitter account has also been disabled. Guess we got scammed "T- witter] (May 19, 2023)</ref>
<ref name="cryptopotatotwitter-10986">[https://twitter.com/Crypto_Potato/status/1659594137090371587 Crypto_Potato - "The platform's native token, expectely, dumped by over 99% in hours." - Twitter] (May 19, 2023)</ref>
<ref name="esatoshiclubtwitter-10987">[https://twitter.com/esatoshiclub/status/1659511692315836418 esatoshiclub - "Approximately 1,628 #ETH, equivalent to $3M, was siphoned off from the platform's #Liquidity pools" - Twitter] (May 19, 2023)</ref>
<ref name="alabasimamountwitter-10988">[https://twitter.com/AlabasiMamoun/status/1658901074160361476 AlabasiMamoun - "Join the best Yield #Farming pools and earn high APR" - Twitter] (May 19, 2023)</ref>
<ref name="brahmi1973twitter-10989">[https://twitter.com/Brahmi1973/status/1659123244379561985 Brahmi1973 - "Good project And the second draw but mining has stopped" - Twitter] (May 19, 2023)</ref>
<ref name="mnathu0105twitter-10990">[https://twitter.com/MNAThu0105/status/1659596705636188161 MNAThu0105 - "Swaprum DEX Drained in $3M Crypto Rugpull 9min ago by." - Twitter] (May 19, 2023)</ref>
<ref name="numencybertwitter-10991">[https://twitter.com/numencyber/status/1659518657175883776 Numen Cyber - "#Arbitrum's Swaprum was rugged by its team for 1,629 $ETH (~$2.95mil) The token $SAPR has plummeted by 100% Swaprum has also deleted all its social media accounts" - Twitter] (May 19, 2023)</ref>
<ref name="koinbultwitter-10992">[https://twitter.com/_Koinbul_/status/1659510629269372928 _Koinbul_ - "Swaprum DEX team disappears with $3 million in apparent exit scam on Arbitrum network" - Twitter] (May 19, 2023)</ref>
<ref name="0xepicatwitter-10993">[https://twitter.com/0xEpica/status/1659556119851974656 0xEpica - "Swaprum added liquidity into $SAPR token. This aims to achieve the following goals" - Twitter] (May 19, 2023)</ref>
<ref name="lun68251148twitter-10994">[https://twitter.com/Lun68251148/status/1658990753870385152 Lun68251148 - "you will regret when you deposit money into a project that smells like a scam" - Twitter] (May 19, 2023)</ref>
<ref name="becausebitcointwitter-10995">[https://twitter.com/BecauseBitcoin/status/1659526966372868097 @BecauseBitcoin Twitter] (May 19, 2023)</ref>
<ref name="djkhileshrajtwitter-10996">[https://twitter.com/djkhileshraj/status/1659009714813026304 djkhileshraj - "Hello sir swaprum website se ARB token withdraw nhi ho rha hai trust wallet me please give me any solution." - Twitter] (May 19, 2023)</ref>
<ref name="cyversalertstwitter-10997">[https://twitter.com/CyversAlerts/status/1659442219420471296 CyversAlerts - "ALERT @swaprum hacker has bridged the all stolen funds to #Ethereum and deposited 1620 #ETH ($3M) already deposited via @TornadoCash." - Twitter] (May 19, 2023)</ref>
<ref name="yunasmftwitter-10998">[https://twitter.com/YunasMF/status/1659476304541147137 YunasMF - "Yes you right" - Twitter] (May 19, 2023)</ref>
<ref name="perseuscryptotwitter-10999">[https://twitter.com/Perseus_Crypto_/status/1659520602099572736 Perseus_Crypto_ - "Breaking News: Swaprum DEX allegedly pulls off a $3 million exit scam on Arbitrum Network, leaving users in disbelief. " - Twitter] (May 19, 2023)</ref>
<ref name="cryptaiatechtwitter-11000">[https://twitter.com/CryptaiaTech/status/1659514500507213824 CryptaiaTech - "Swaprum DEX team disappears with $3 million in apparent exit scam on Arbitrum network" - Twitter] (May 19, 2023)</ref>
<ref name="becausebitcointwitter-11001">[https://twitter.com/BecauseBitcoin/status/1659513274029703168 BecauseBitcoin - "JUST IN: In what appears to be an exit scam on the Arbitrum $ARB network, the #Swaprum DEX team vanishes" - Twitter] (May 19, 2023)</ref>
<ref name="newsgagarintwitter-11002">[https://twitter.com/NewsGagarin/status/1659544949514289152 NewsGagarin - "For more details on how #Swaprum defrauded its users, read through this thread" - Twitter] (May 19, 2023)</ref>
<ref name="majedmaddevtwitter-11003">[https://twitter.com/MajedMaddev/status/1659562337378918400 MajedMaddev - "Swaprum, a decentralized exchange on the Ethereum Layer 2 network Arbitrum, appears to have executed an "exit scam" commonly referred to as a "rug pull," absconding with an estimated $3 million in user deposits." - Twitter] (May 19, 2023)</ref>
<ref name="juanpmarintwitter-11004">[https://twitter.com/JuanP_marin/status/1659273873085407261 JuanP_marin - "Wtf @CertiK ? Did they bought the audit?" -Twitter] (May 19, 2023)</ref>
<ref name="jurangcryptotwitter-11005">[https://twitter.com/JurangCrypto/status/1659575115259195393 Wisper Crypto - "Breaking News! #Swaprum DEX On #Arbitrum Rug Pulls $3M, SAPR Token Crashes 100%" - Twitter] (May 19, 2023)</ref>
<ref name="chainaegistwitter-11006">[https://twitter.com/ChainAegis/status/1659444425179938816 ChainAegis - "According to the security monitoring of @ChainAegis, an analysis platform on the SharkTeam, Rug Pull occurred in the Arbitrum ecological Swaprum project" - Twitter] (May 19, 2023)</ref>
<ref name="aloponaftwitter-11007">[https://twitter.com/aloponaf/status/1658979516096876545 aloponaf - "@Swaprum amazing payment" - Twitter] (May 19, 2023)</ref>
<ref name="dariush72249709twitter-11008">[https://twitter.com/dariush72249709/status/1659502503942139904 dariush72249709 - "Bro dont pay scam site withdrawal transaction dont work 100% scam" - Twitter] (May 19, 2023)</ref>
<ref name="beosinalerttwitter-11009">[https://twitter.com/BeosinAlert/status/1659482287422193664 Beosin Alert - "Swaprum on Arbitrum rugged for ~$3M. The deployer of Swaprum used the add() backdoor function to steal LP tokens staked by users, then removed liquidity from the pool for profit." - Twitter] (May 19, 2023)</ref>
<ref name="datedata51twitter-11010">[https://twitter.com/datedata51/status/1659019451457748992 datedata51 - "Join the best Yield #Farming pools and earn high APR" - Twitter] (May 19, 2023)</ref>
<ref name="dailynewsweb3twitter-11011">[https://twitter.com/DailyNewsWeb3/status/1659534539306471425 DailyNewsWeb3 - "Decentralized Exchange Platform Loses $3 Million in Scam" - Twitter] (May 19, 2023)</ref>
<ref name="aryobagas9twitter-11012">[https://twitter.com/AryoBagas9/status/1658951836026679297 AryoBagas9 - "funny" "Error Bad request, check internet" - Twitter] (May 19, 2023)</ref>
<ref name="blinanalyticstwitter-11013">[https://twitter.com/BlinAnalytics/status/1659471606706495489 Blin Analytics - "@Swaprum was rugged on @arbitrum network. 1620 $ETH (~ $2.7M) was bridged to Ethereum network and deposited to @TornadoCash." - Twitter] (May 19, 2023)</ref>
<ref name="ayodelesammyleetwitter-11014">[https://twitter.com/AyodeleSammylee/status/1658876053266264064 AyodeleSammylee - "Telegram account is full" - Twitter] (May 19, 2023)</ref>
<ref name="tokenmetricsinctwitter-11015">[https://twitter.com/tokenmetricsinc/status/1659514780116307968 Token Metrics - "BREAKING: Swaprum DEX Team Absconds with $3M: Suspected Exit Scam on Arbitrum Network" - Twitter] (May 19, 2023)</ref>
<ref name="hayatkhan6931twitter-11016">[https://twitter.com/hayatkhan6931/status/1658915324660523025 hayatkhan6931 - "I want you to help, even in withdrawing, there is a pending order." - Twitter] (May 19, 2023)</ref>
<ref name="web3wisertwitter-11017">[https://twitter.com/web3wiser/status/1659540574767120386 web3wiser - "Breaking: Swaprum #DEX On #Arbitrum Rug Pulls $3M, SAPR Token Crashes 100%" - Twitter] (May 19, 2023)</ref>
<ref name="blmcryptotwitter-11018">[https://twitter.com/blm_crypto/status/1658986244133748737 blm_crypto - "$SAPR stakeしてたから1.5 $ARB /hになった" - Twitter] (May 19, 2023)</ref>
<ref name="psquaredailytwitter-11019">[https://twitter.com/pSquare_Daily/status/1659542627010891778 pSquare_Daily - "Swaprum (Arbitrum DEX) Pulls Exit Scam, Team Disappears With $3 Million, Twitter Account Deleted" - Twitter] (May 19, 2023)</ref>
<ref name="web3watchdogtwitter-11020">[https://twitter.com/web3_watchdog/status/1659405757572341760 web3_watchdog - "PeckShieldAlert: #PeckShieldAler #rugpull @Swaprum on #Arbitrum rugged ~$3M, $SAPR has dropped -100%" - Twitter] (May 19, 2023)</ref>
<ref name="parhan235twitter-11021">[https://twitter.com/Parhan235/status/1658980754511265792 Parhan235 - "good project...and good investasi.....bravo @Swaprum" - Twitter] (May 19, 2023)</ref>
<ref name="kirill186186twitter-11022">[https://twitter.com/Kirill186186/status/1659056318378811394 Kirill186186 - "@Swaprum he deceived us all, we fulfilled all the conditions, but they threw us .. do not believe this is ophirists" - Twitter] (May 19, 2023)</ref>
<ref name="beyondkartotwitter-11023">[https://twitter.com/Beyond_Karto/status/1659544007804854274 Beyond_Karto - "Important Alert! Crypto traders, beware! Swaprum, an exchange on Arbitrum network, has been exposed as a decentralized scam. The team behind it has shamelessly withdrawn approximately $3 million from customer deposits" - Twitter] (May 19, 2023)</ref>
<ref name="defivisionarytwitter-11024">[https://twitter.com/DeFiVisionary/status/1659532864445206529 DeFiVisionary - "The #Swaprum rug pull has left investors devastated with a jaw-dropping $3 million loss in this #defi scam." - Twitter] (May 19, 2023)</ref>
<ref name="sanjeev08818841twitter-11025">[https://twitter.com/Sanjeev08818841/status/1659038558173429761 Sanjeev08818841 - "What is this" - Twitter] (May 19, 2023)</ref>
<ref name="winnerilltwitter-11026">[https://twitter.com/winnerill/status/1659546071679352833 winnerill - "Just got rugged on Swaprum. Site and discord is still up. A lot of work for 1 million" - Twitter] (May 19, 2023)</ref>
<ref name="lamarziaatwitter-11027">[https://twitter.com/la_marziaa/status/1659440113372520449 la_marziaa - "swaprum finance deactivate their twitter account?" - Twitter] (May 19, 2023)</ref>
<ref name="mohsencngtwitter-11028">[https://twitter.com/mohsencng/status/1658906952628412433 mohsencng - "Why hasn't the token been deposited into my wallet after a few days of requesting a withdrawal?" - Twitter] (May 19, 2023)</ref>
<ref name="beyondbitcoin1twitter-11029">[https://twitter.com/Beyond_bitcoin1/status/1659515897004826625 Beyond_bitcoin1 - "JUST IN: Swaprum, a decentralized exchange (DEX) built on @arbitrum ruggpulls with $3 million users deposit." - Twitter] (May 19, 2023)</ref>
<ref name="thecryptopuritytwitter-11030">[https://twitter.com/TheCryptopurity/status/1659598409743888385 TheCryptopurity - "$3 million Crypto Rugpull Drains Swaprum DEX" - Twitter] (May 19, 2023)</ref>
<ref name="khuongeyelesstwitter-11031">[https://twitter.com/Khuongeyeless/status/1659014164428509185 Khuongeyeless - "Why does the claim not accumulate in the balance section?" - Twitter] (May 19, 2023)</ref>
<ref name="skynet-11032">[https://skynet.certik.com/projects/swaprum Swaprum  - CertiK Skynet Project Insight] (May 19, 2023)</ref>
<ref name="theblock-11033">[https://www.theblock.co/post/231539/swaprum-dex-exit-scam-arbitrum Swaprum DEX team disappears with $3 million in apparent exit scam - The Block] (May 19, 2023)</ref>
</references>