Azoundria: Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/empoweraitokenrugpull.php}} {{Unattributed Sources}} Empower AI Market HistoryEmpower AI launched a token along with a website, Telegram, and Twitter account. Their token started trending with a large amount of volume, however the token was set up such that it could not be sold by most users. In the end, the liquidity of the smart contract was drained, netting the toke..."

2024-05-10T19:35:32Z

Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/empoweraitokenrugpull.php}} {{Unattributed Sources}} thumb|Empower AI Market HistoryEmpower AI launched a token along with a website, Telegram, and Twitter account. Their token started trending with a large amount of volume, however the token was set up such that it could not be sold by most users. In the end, the liquidity of the smart contract was drained, netting the toke..."

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{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/empoweraitokenrugpull.php}}
{{Unattributed Sources}}

[[File:Empowerai.jpg|thumb|Empower AI Market History]]Empower AI launched a token along with a website, Telegram, and Twitter account. Their token started trending with a large amount of volume, however the token was set up such that it could not be sold by most users. In the end, the liquidity of the smart contract was drained, netting the token creator 66.44 ETH, minus whatever their cost was of setting up the token. The website homepage and Twitter went offline. The Telegram and Docs section of the website remain online.

This is a global/international case not involving a specific country.<ref name="slowmisthackedarchive-13505" /><ref name="dextools-13641" /><ref name="etherscan-13642" /><ref name="etherscan-13643" /><ref name="empoweraiarchive-13644" /><ref name="empoweraitelegram-13645" /><ref name="empoweraixtwitter-13646" /><ref name="empoweraixtwitterarchive-13647" /><ref name="dextoolsupdatetwitter-13648" /><ref name="snipeguruvoltwitter-13649" /><ref name="russ5555555twitter-13650" /><ref name="dexedethtwitter-13651" /><ref name="vitcngnguy17228twitter-13652" /><ref name="dexed-13653" /><ref name="etherscan-13654" /><ref name="etherscan-13655" /><ref name="peckshieldalerttwitter-13656" /><ref name="bojo0xtwitter-13657" /><ref name="bilaxyexchangetwitter-13658" /><ref name="bilaxyexchangetwitter-13659" /><ref name="bilaxyexchangetwitter-13660" /><ref name="web3watchdogtwitter-13661" /><ref name="chainaegistwitter-13662" /><ref name="empoweraidocsarchive-13663" /><ref name="empoweraidocs-13664" /><ref name="empoweraidocs-13665" /><ref name="davidbaczittwitter-13666" /><ref name="coinspeedrunbottwitter-13667" /><ref name="cryptorickgmtwitter-13668" /><ref name="frogelon63336twitter-13669" /><ref name="bothype13170twitter-13670" /><ref name="tokensethereumtwitter-13671" /><ref name="fxcryptobotstwitter-13672" /><ref name="blackhattmtwitter-13673" /><ref name="cryptosymbooltwitter-13674" /><ref name="troymc23twitter-13675" /><ref name="muhamma73022712twitter-13676" /><ref name="whisperchadtwitter-13677" /><ref name="degenfinderstwitter-13678" /><ref name="cmethbottwitter-13679" /><ref name="atlantesiotwitter-13680" /><ref name="zbischoffztwitter-13681" /><ref name="alaziootwitter-13682" /><ref name="seant3621twitter-13683" /><ref name="geckoterminal-13684" /><ref name="binance-13685" />

== About Empower AI ==
"Empower AI is a decentralized non-custodial lending and borrowing protocol."

"Permissionless Infrastructure for Smart Money Management. We are the leading gateway to smart on-chain money managers, bringing maximised yields and optimal..."

"Empower AI Protocol is building the infrastructure to empowering the next generation of billions of investors to access sophisticated on-chain trading strategies in a fully non-custodial, trustless manner. We envision a future where all blockchain investors have access to sophisticated automated strategies on a scale comparable to traditional finance platforms."

"Empower AI Protocol brings its proprietary quantitative strategies on-chain, creating positions within narrow liquidity ranges. These constantly monitor price movements and strategically triggering rebalances that reduce Impermanent Loss while maximizing generated fees."

"Uniswap V3 brought in new ways of managing liquidity, yet we haven't seen any consumer-focused vaults adopting impartial strategies for this.

The key reason is the added incentives offered by these vaults. When a vault provides extra rewards beyond what's earned from the usual market-making activities, most investors prefer to channel their funds through the vault to capture these bonuses. This makes the vault a more appealing option compared to directly participating in the market-making process.

The dynamics of that will be that the vault will become a significant % of the pool. Hence, if the vault strategist were to remove liquidity and rebalance the exposure by swapping on the pool then there would be massive slippage as the vault itself was the significant % of the pool.

This is where we bring in our active liquidity management infrastructure which will be paradigm-shifting in making defi efficient."

"Our AMM vaults provide infrastructure for market makers and trading partners to run a wide array of strategies on top of concentrated..."

"We plan to merge the best features of both AMMs (Automated Market Makers) and RFQs (Request for Quote model) in a trustless and non-custodial"

"MAX TOTAL SUPPLY 100,000,000 EMPAI"

"50k+ buy volume detected Name: #EMPAI
0xf445a2E240C73cFaaf0654202157F9c5457E5F73
└─ Contract holds 0.023% of Token supply!"

"The price of Empower AI (EMPAI) on Ethereum has dropped by 100%. A whale 0xE4808...f3bA has dumped 1,000,000,000,000 EMPAI for about 66.44 WETH (valued at around $23,750)."

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 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.

== 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 - Empower AI Token Rug Pull
!Date
!Event
!Description
|-
|April 10th, 2024 3:02:00 PM MDT
|Dexed Trending Alert
|Service Dexed_Io reports a trend alert on the EMPAI token.
|-
|April 10th, 2024 3:14:00 PM MDT
|DexTools Update
|A report that the EMPAI token has been added to DexTools.
|-
|April 10th, 2024 4:38:00 PM MDT
|Buy Volume Tweet
|A 50k+ buy volume signal is detected on the token, with a report of over 30 ETH in liquidity being established.
|-
|April 10th, 2024 6:04:47 PM MDT
|Large Purchase
|A large purchase of more than 5.14 ETH is made on the token.
|-
|April 10th, 2024 6:47:00 PM MDT
|Cryptosymbool Report
|Cryptosymbool reports that EMPAI is a honeypot.
|-
|April 10th, 2024 8:22:35 PM MDT
|Another Large Purchase
|This one is only 1.65 ETH.
|-
|April 10th, 2024 8:38:00 PM MDT
|Paul Can't Sell
|Paul (thecryptoguyog) reports being unable to sell the token.
|-
|April 11th, 2024 2:42:00 AM MDT
|Unable To Sell
|Viết Cường Nguyễn (user VitCngNguy17228) reports being unable to sell the token and warns others not to buy it.
|-
|April 11th, 2024 4:27:35 AM MDT
|Whale Dumping Token
|One trillion EMPAI is dumped for 66.44 wrapped ethereum.
|-
|April 11th, 2024 4:35:00 AM MDT
|PeckShield Alert
|PeckShield posts an alerta about the whale dumping the token.
|-
|April 17th, 2024 3:23:11 PM MDT
|Deployment Not Found
|Captures of the associated website report an error where the deployment could not be found.
|}

== 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?

== Total Amount Lost ==
The total amount lost has been estimated at $238,000 USD.

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

== 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?

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

== 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:Individuals:Placeholder}}

{{Prevention:Individuals:End}}

== Platform Prevention Policies ==
{{Prevention:Platforms:Placeholder}}

{{Prevention:Platforms:End}}

== Regulatory Prevention Policies ==
{{Prevention:Regulators:Placeholder}}

{{Prevention:Regulators:End}}

== References ==
<references><ref name="slowmisthackedarchive-13505">[https://web.archive.org/web/20240501212440/https://hacked.slowmist.io/?c=&page=2 SlowMist Hacked - SlowMist Zone] (May 1, 2024)</ref>

<ref name="dextools-13641">[https://www.dextools.io/app/cn/ether/pair-explorer/0x27d6f3d95e4888e1eacd19b200abec9089153a44?t=1713102750687 https://www.dextools.io/app/cn/ether/pair-explorer/0x27d6f3d95e4888e1eacd19b200abec9089153a44?t=1713102750687] (May 8, 2024)</ref>

<ref name="etherscan-13642">[https://etherscan.io/tx/0xfdbcd2c9abbb4db7b8959039b071f71b9ab90374170e1b5321f760a4becd033a Ethereum Transaction Hash (Txhash) Details | Etherscan] (May 8, 2024)</ref>

<ref name="etherscan-13643">[https://etherscan.io/token/0xf445a2e240c73cfaaf0654202157f9c5457e5f73#balances Empower AI (EMPAI) Token Tracker | Etherscan] (May 8, 2024)</ref>

<ref name="empoweraiarchive-13644">[https://web.archive.org/web/20240417212311/https://www.empowerai.tech/ Wayback Machine] (May 9, 2024)</ref>

<ref name="empoweraitelegram-13645">[https://t.me/empowerai Telegram: Contact @empowerai] (May 9, 2024)</ref>

<ref name="empoweraixtwitter-13646">[https://twitter.com/empowerai_x @empowerai_x Twitter] (May 9, 2024)</ref>

<ref name="empoweraixtwitterarchive-13647">[https://web.archive.org/web/20240508125440/https://twitter.com/empowerai_x @empowerai_x Twitter] (May 9, 2024)</ref>

<ref name="dextoolsupdatetwitter-13648">[https://twitter.com/DextoolsUpdate/status/1778169663706259479 @DextoolsUpdate Twitter] (May 9, 2024)</ref>

<ref name="snipeguruvoltwitter-13649">[https://twitter.com/snipeguruvol/status/1778190756035109317 @snipeguruvol Twitter] (May 9, 2024)</ref>

<ref name="russ5555555twitter-13650">[https://twitter.com/russ5555555/status/1778208981522985462 @russ5555555 Twitter] (May 9, 2024)</ref>

<ref name="dexedethtwitter-13651">[https://twitter.com/dexed_eth/status/1778166694994682172 @dexed_eth Twitter] (May 9, 2024)</ref>

<ref name="vitcngnguy17228twitter-13652">[https://twitter.com/VitCngNguy17228/status/1778342802486911403 @VitCngNguy17228 Twitter] (May 9, 2024)</ref>

<ref name="dexed-13653">[https://dexed.io/app/eth/0xf445a2E240C73cFaaf0654202157F9c5457E5F73 Empower AI live price : EMPAI/WETH - Dexed.io - The Degen Dashboard] (May 9, 2024)</ref>

<ref name="etherscan-13654">[https://etherscan.io/tx/0x0f695f1704ca46fa17632aa5b936ad9d9ec5e03b1d68bce82623905fd5b01878 Ethereum Transaction Hash (Txhash) Details | Etherscan] (May 9, 2024)</ref>

<ref name="etherscan-13655">[https://etherscan.io/tx/0xefd328b92826d5a46b3868d640dd2802745a0638a926d698b9541a7ff1b13ad0 Ethereum Transaction Hash (Txhash) Details | Etherscan] (May 9, 2024)</ref>

<ref name="peckshieldalerttwitter-13656">[https://twitter.com/PeckShieldAlert/status/1778371334684508508 @PeckShieldAlert Twitter] (May 9, 2024)</ref>

<ref name="bojo0xtwitter-13657">[https://twitter.com/Bojo0x/status/1778299753014407539 @Bojo0x Twitter] (May 9, 2024)</ref>

<ref name="bilaxyexchangetwitter-13658">[https://twitter.com/Bilaxy_exchange/status/1778196624373617008 @Bilaxy_exchange Twitter] (May 9, 2024)</ref>

<ref name="bilaxyexchangetwitter-13659">[https://twitter.com/Bilaxy_exchange/status/1778165321926365228 @Bilaxy_exchange Twitter] (May 9, 2024)</ref>

<ref name="bilaxyexchangetwitter-13660">[https://twitter.com/Bilaxy_exchange/status/1778179189348180017 @Bilaxy_exchange Twitter] (May 9, 2024)</ref>

<ref name="web3watchdogtwitter-13661">[https://twitter.com/web3_watchdog/status/1778373262046589273 @web3_watchdog Twitter] (May 9, 2024)</ref>

<ref name="chainaegistwitter-13662">[https://twitter.com/ChainAegis/status/1778602654366912691 @ChainAegis Twitter] (May 9, 2024)</ref>

<ref name="empoweraidocsarchive-13663">[https://web.archive.org/web/20240508125516/https://docs.empowerai.tech/ Empower AI | Empower AI] (May 9, 2024)</ref>

<ref name="empoweraidocs-13664">[https://docs.empowerai.tech/ Empower AI | Empower AI] (May 9, 2024)</ref>

<ref name="empoweraidocs-13665">[https://docs.empowerai.tech/amm-vaults/strategy-details Strategy Details | Empower AI] (May 9, 2024)</ref>

<ref name="davidbaczittwitter-13666">[https://twitter.com/DavidBacZit/status/1778398475753083210 @DavidBacZit Twitter] (May 9, 2024)</ref>

<ref name="coinspeedrunbottwitter-13667">[https://twitter.com/CoinspeedrunBot/status/1778159011998609493 @CoinspeedrunBot Twitter] (May 9, 2024)</ref>

<ref name="cryptorickgmtwitter-13668">[https://twitter.com/crypto_rick_gm/status/1778191623081320582 @crypto_rick_gm Twitter] (May 9, 2024)</ref>

<ref name="frogelon63336twitter-13669">[https://twitter.com/frog_elon63336/status/1778185395412607259 @frog_elon63336 Twitter] (May 9, 2024)</ref>

<ref name="bothype13170twitter-13670">[https://twitter.com/bot_hype13170/status/1778165232218644935 @bot_hype13170 Twitter] (May 9, 2024)</ref>

<ref name="tokensethereumtwitter-13671">[https://twitter.com/TokensEthereum/status/1778158753839259943 @TokensEthereum Twitter] (May 9, 2024)</ref>

<ref name="fxcryptobotstwitter-13672">[https://twitter.com/FXCryptoBots/status/1778347584093847642 @FXCryptoBots Twitter] (May 9, 2024)</ref>

<ref name="blackhattmtwitter-13673">[https://twitter.com/blackhat_TM/status/1778203709840715782 @blackhat_TM Twitter] (May 9, 2024)</ref>

<ref name="cryptosymbooltwitter-13674">[https://twitter.com/Cryptosymbool/status/1778223256727695406 @Cryptosymbool Twitter] (May 9, 2024)</ref>

<ref name="troymc23twitter-13675">[https://twitter.com/troymc23/status/1778228950051012748 @troymc23 Twitter] (May 9, 2024)</ref>

<ref name="muhamma73022712twitter-13676">[https://twitter.com/Muhamma73022712/status/1778243614050517345 @Muhamma73022712 Twitter] (May 9, 2024)</ref>

<ref name="whisperchadtwitter-13677">[https://twitter.com/whisperchad/status/1778197452044353731 @whisperchad Twitter] (May 9, 2024)</ref>

<ref name="degenfinderstwitter-13678">[https://twitter.com/DegenFinders/status/1778218993507291571 @DegenFinders Twitter] (May 9, 2024)</ref>

<ref name="cmethbottwitter-13679">[https://twitter.com/cmethbot/status/1778165237881119202 @cmethbot Twitter] (May 9, 2024)</ref>

<ref name="atlantesiotwitter-13680">[https://twitter.com/atlantes_io/status/1778241636893413577 @atlantes_io Twitter] (May 9, 2024)</ref>

<ref name="zbischoffztwitter-13681">[https://twitter.com/zBischoffz/status/1778179258323800129 @zBischoffz Twitter] (May 9, 2024)</ref>

<ref name="alaziootwitter-13682">[https://twitter.com/Alazioo/status/1778195754215215287 @Alazioo Twitter] (May 9, 2024)</ref>

<ref name="seant3621twitter-13683">[https://twitter.com/SeanT3621/status/1778377401694552571 @SeanT3621 Twitter] (May 9, 2024)</ref>

<ref name="geckoterminal-13684">[https://www.geckoterminal.com/base/pools/0xfec1a966cd8db03e0637237c5b602352c5fd01a0 EMPAI/WETH - Empower AI Price on Uniswap V2 (Base) | GeckoTerminal] (May 9, 2024)</ref>

<ref name="binance-13685">[https://www.binance.com/en/square/post/2024-04-11-empower-ai-rug-pull-100-6625821571938 https://www.binance.com/en/square/post/2024-04-11-empower-ai-rug-pull-100-6625821571938] (May 9, 2024)</ref></references>

Empower AI Token Rug Pull - Revision history