Zap Finance Exit Scam - Revision history

Azoundria at 21:46, 10 May 2024

2024-05-10T21:46:02Z

← Older revision		Revision as of 15:46, 10 May 2024
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	[[File:Binancesecurity.jpg\|thumb\|Zap Finance]]Zap Finance was another yield farming platform which ended up disappearing. All social media and the website disappeared, and investors did not get any recovery.		[[File:Binancesecurity.jpg\|thumb\|Zap Finance]]Zap Finance was another yield farming platform which ended up disappearing. All social media and the website disappeared, and investors did not get any recovery.

	This is a global/international case not involving a specific country.<ref name="vcdotru-1458" /><ref name="slowmisthacked-678" /><ref name="bscscan-2494" /><ref name="zapfinancearchive-2495" /><ref name="bitcointalk-2496" /><ref name="bscdotnews-2497" /><ref name="bscscan-2498" /><ref name="bscscan-2499" />		This is a global/international case not involving a specific country.<ref name="vcdotru-1458" /><ref name="slowmisthacked-678" /><ref name="bscscan-2494" /><ref name="zapfinancearchive-2495" /><ref name="bitcointalk-2496" /><ref name="bscdotnews-2497" /><ref name="bscscan-2498" /><ref name="bscscan-2499" /><ref name="comparitech-10032" />

	== About Zap Finance ==		== About Zap Finance ==
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	<ref name="bscscan-2498">[https://bscscan.com/tx/0x50bfb24461dfb27e750f0ba4fa0f7754ec3a5d657c41cf9f41dbc7aead3a6b99 Binance Transaction Hash (Txhash) Details \| BscScan] (Aug 14, 2021)</ref>		<ref name="bscscan-2498">[https://bscscan.com/tx/0x50bfb24461dfb27e750f0ba4fa0f7754ec3a5d657c41cf9f41dbc7aead3a6b99 Binance Transaction Hash (Txhash) Details \| BscScan] (Aug 14, 2021)</ref>

	<ref name="bscscan-2499">[https://bscscan.com/tx/0xc00da145ac76c16eda42c7945c78b8dc8a9a509a9583a8d0a2b6931632ef3b48 Binance Transaction Hash (Txhash) Details \| BscScan] (Aug 14, 2021)</ref></references>		<ref name="bscscan-2499">[https://bscscan.com/tx/0xc00da145ac76c16eda42c7945c78b8dc8a9a509a9583a8d0a2b6931632ef3b48 Binance Transaction Hash (Txhash) Details \| BscScan] (Aug 14, 2021)</ref>

			<ref name="comparitech-10032">[https://www.comparitech.com/crypto/cryptocurrency-scams/ Worldwide crypto & NFT rug pulls and scams tracker - Comparitech] (Dec 15, 2022)</ref></references>

Azoundria at 18:50, 2 May 2023

2023-05-02T18:50:03Z

← Older revision		Revision as of 12:50, 2 May 2023
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	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/zapfinanceexitscam.php}}		{{Imported Case Study 2\|source=https://www.quadrigainitiative.com/casestudy/zapfinanceexitscam.php}}
	{{Unattributed ~~Citations~~}}		{{Unattributed Sources}}

	[[File:Binancesecurity.jpg\|thumb\|Zap Finance]]Zap Finance was another yield farming platform which ended up disappearing. All social media and the website disappeared, and investors did not get any recovery.		[[File:Binancesecurity.jpg\|thumb\|Zap Finance]]Zap Finance was another yield farming platform which ended up disappearing. All social media and the website disappeared, and investors did not get any recovery.

	This is a global/international case not involving a specific country.		This is a global/international case not involving a specific country.<ref name="vcdotru-1458" /><ref name="slowmisthacked-678" /><ref name="bscscan-2494" /><ref name="zapfinancearchive-2495" /><ref name="bitcointalk-2496" /><ref name="bscdotnews-2497" /><ref name="bscscan-2498" /><ref name="bscscan-2499" />
	<ref name="vcdotru-1458" /><ref name="slowmisthacked-678" /><ref name="bscscan-2494" /><ref name="zapfinancearchive-2495" /><ref name="bitcointalk-2496" /><ref name="bscdotnews-2497" /><ref name="bscscan-2498" /><ref name="bscscan-2499" />

	== About Zap Finance ==		== About Zap Finance ==
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	!Description		!Description
	\|-		\|-
	\|January 30th, 2021 ~~12:00:00 AM~~		\|January 30th, 2021
	\|Main Event		\|Main Event
	\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.		\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
Line 73:		Line 72:
	\|		\|
	\|}		\|}

			== 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 ==		== Total Amount Lost ==
Line 92:		Line 94:
	== Ongoing Developments ==		== Ongoing Developments ==
	What parts of this case are still remaining to be concluded?		What parts of this case are still remaining to be concluded?
			== General Prevention Policies ==
			Zap Finance was run by an anonymous team, possibly a single person of unknown background. The funds were not stored offline, nor in a multi-signature arrangement.
			== 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 ~~Policies ==~~		{{Prevention:Regulators:End}}
	~~Zap Finance was run by an anonymous team, possibly a single person of unknown background. The funds were not stored offline, nor in a multi-signature arrangement.~~

	== References ==		== References ==
	<references><ref name="vcdotru-1458">[https://vc.ru/finance/203315-popcornswap-sharkyield-zap-finance-tin-finance-multi-financial-ostorozhno-ekzit-skamy-smi Popcornswap, SharkYield, Zap Finance, Tin Finance, Multi Financial — осторожно] (Jul 9, 2021)</ref>		<references><ref name="vcdotru-1458">[https://vc.ru/finance/203315-popcornswap-sharkyield-zap-finance-tin-finance-multi-financial-ostorozhno-ekzit-skamy-smi Popcornswap, SharkYield, Zap Finance, Tin Finance, Multi Financial — осторожно] (Jul 10, 2021)</ref>

	<ref name="slowmisthacked-678">[https://hacked.slowmist.io/en/?c=ETH%20DApp SlowMist Hacked - SlowMist Zone] (May 17, 2021)</ref>		<ref name="slowmisthacked-678">[https://hacked.slowmist.io/en/?c=ETH%20DApp SlowMist Hacked - SlowMist Zone] (May 18, 2021)</ref>

	<ref name="bscscan-2494">[https://bscscan.com/token/0x80e3d8166e3c9a6e1c59363aaa125e9a729d4f2e Zap Finance (ZAP) Token Tracker \| BscScan] (Aug 13, 2021)</ref>		<ref name="bscscan-2494">[https://bscscan.com/token/0x80e3d8166e3c9a6e1c59363aaa125e9a729d4f2e Zap Finance (ZAP) Token Tracker \| BscScan] (Aug 14, 2021)</ref>

	<ref name="zapfinancearchive-2495">[https://web.archive.org/web/20210128190627/https://zap.finance/ Zap Finance] (Aug 13, 2021)</ref>		<ref name="zapfinancearchive-2495">[https://web.archive.org/web/20210128190627/https://zap.finance/ Zap Finance] (Aug 14, 2021)</ref>

	<ref name="bitcointalk-2496">[https://bitcointalk.org/index.php?topic=5312942.0 <nowiki>[ANN][DeFi] Zap Finance - DeFi Lending & Trading Platform on Binance Smart Chain</nowiki>] (Aug 13, 2021)</ref>		<ref name="bitcointalk-2496">[https://bitcointalk.org/index.php?topic=5312942.0 <nowiki>[ANN][DeFi] Zap Finance - DeFi Lending & Trading Platform on Binance Smart Chain</nowiki>] (Aug 14, 2021)</ref>

	<ref name="bscdotnews-2497">[https://www.bsc.news/post/liquidity-siphon-rugpulls-on-the-binance-smart-chain What Are Liquidity Siphon Rugpulls on Binance Smart Chain?] (Aug 13, 2021)</ref>		<ref name="bscdotnews-2497">[https://www.bsc.news/post/liquidity-siphon-rugpulls-on-the-binance-smart-chain What Are Liquidity Siphon Rugpulls on Binance Smart Chain?] (Aug 14, 2021)</ref>

	<ref name="bscscan-2498">[https://bscscan.com/tx/0x50bfb24461dfb27e750f0ba4fa0f7754ec3a5d657c41cf9f41dbc7aead3a6b99 Binance Transaction Hash (Txhash) Details \| BscScan] (Aug 13, 2021)</ref>		<ref name="bscscan-2498">[https://bscscan.com/tx/0x50bfb24461dfb27e750f0ba4fa0f7754ec3a5d657c41cf9f41dbc7aead3a6b99 Binance Transaction Hash (Txhash) Details \| BscScan] (Aug 14, 2021)</ref>

	<ref name="bscscan-2499">[https://bscscan.com/tx/0xc00da145ac76c16eda42c7945c78b8dc8a9a509a9583a8d0a2b6931632ef3b48 Binance Transaction Hash (Txhash) Details \| BscScan] (Aug 13, 2021)</ref></references>		<ref name="bscscan-2499">[https://bscscan.com/tx/0xc00da145ac76c16eda42c7945c78b8dc8a9a509a9583a8d0a2b6931632ef3b48 Binance Transaction Hash (Txhash) Details \| BscScan] (Aug 14, 2021)</ref></references>

Azoundria at 17:51, 17 February 2023

2023-02-17T17:51:25Z

← Older revision		Revision as of 11:51, 17 February 2023
Line 1:		Line 1:
	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/zapfinanceexitscam.php}}		{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/zapfinanceexitscam.php}}
			{{Unattributed Citations}}

	[[File:Binancesecurity.jpg\|thumb\|Zap Finance]]Zap Finance was another yield farming platform which ended up disappearing. All social media and the website disappeared, and investors did not get any recovery.		[[File:Binancesecurity.jpg\|thumb\|Zap Finance]]Zap Finance was another yield farming platform which ended up disappearing. All social media and the website disappeared, and investors did not get any recovery.

	This is a global/international case not involving a specific country.		This is a global/international case not involving a specific country.
			<ref name="vcdotru-1458" /><ref name="slowmisthacked-678" /><ref name="bscscan-2494" /><ref name="zapfinancearchive-2495" /><ref name="bitcointalk-2496" /><ref name="bscdotnews-2497" /><ref name="bscscan-2498" /><ref name="bscscan-2499" />

	== About Zap Finance ==		== About Zap Finance ==
Line 43:		Line 45:

	Don't Include:		Don't Include:

	* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.		* 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.		* Anything that wasn't reasonably knowable at the time of the event.
Line 65:		Line 66:
	\|-		\|-
	\|January 30th, 2021 12:00:00 AM		\|January 30th, 2021 12:00:00 AM
	\|~~First~~ Event		\|Main Event
	\|~~This is an expanded~~ description of what happened and the impact. If multiple lines are necessary, add them here.		\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
	\|-
	\|
	\|
	\|
	\|-		\|-
	\|		\|
Line 78:		Line 75:

	== Total Amount Lost ==		== Total Amount Lost ==
	The total amount lost ~~is unknown~~.		The total amount lost has been estimated at $22,000 USD.

	How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?		How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?
Line 89:		Line 86:

	== Total Amount Recovered ==		== Total Amount Recovered ==
	~~It is unknown how much was~~ 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?		What funds were recovered? What funds were reimbursed for those affected users?
Line 100:		Line 97:

	== References ==		== References ==
	[https://vc.ru/finance/203315-popcornswap-sharkyield-zap-finance-tin-finance-multi-financial-ostorozhno-ekzit-skamy-smi Popcornswap, SharkYield, Zap Finance, Tin Finance, Multi Financial — осторожно] (Jul 9)		<references><ref name="vcdotru-1458">[https://vc.ru/finance/203315-popcornswap-sharkyield-zap-finance-tin-finance-multi-financial-ostorozhno-ekzit-skamy-smi Popcornswap, SharkYield, Zap Finance, Tin Finance, Multi Financial — осторожно] (Jul 9, 2021)</ref>

	[https://hacked.slowmist.io/en/?c=ETH%20DApp SlowMist Hacked - SlowMist Zone] (May 17)		<ref name="slowmisthacked-678">[https://hacked.slowmist.io/en/?c=ETH%20DApp SlowMist Hacked - SlowMist Zone] (May 17, 2021)</ref>

	[https://bscscan.com/token/0x80e3d8166e3c9a6e1c59363aaa125e9a729d4f2e Zap Finance (ZAP) Token Tracker \| BscScan] (Aug 13)		<ref name="bscscan-2494">[https://bscscan.com/token/0x80e3d8166e3c9a6e1c59363aaa125e9a729d4f2e Zap Finance (ZAP) Token Tracker \| BscScan] (Aug 13, 2021)</ref>

	[https://web.archive.org/web/20210128190627/https://zap.finance/ Zap Finance] (Aug 13)		<ref name="zapfinancearchive-2495">[https://web.archive.org/web/20210128190627/https://zap.finance/ Zap Finance] (Aug 13, 2021)</ref>

	[https://bitcointalk.org/index.php?topic=5312942.0 <nowiki>[ANN][DeFi] Zap Finance - DeFi Lending & Trading Platform on Binance Smart Chain</nowiki>] (Aug 13)		<ref name="bitcointalk-2496">[https://bitcointalk.org/index.php?topic=5312942.0 <nowiki>[ANN][DeFi] Zap Finance - DeFi Lending & Trading Platform on Binance Smart Chain</nowiki>] (Aug 13, 2021)</ref>

	[https://www.bsc.news/post/liquidity-siphon-rugpulls-on-the-binance-smart-chain What Are Liquidity Siphon Rugpulls on Binance Smart Chain?] (Aug 13)		<ref name="bscdotnews-2497">[https://www.bsc.news/post/liquidity-siphon-rugpulls-on-the-binance-smart-chain What Are Liquidity Siphon Rugpulls on Binance Smart Chain?] (Aug 13, 2021)</ref>

	[https://bscscan.com/tx/0x50bfb24461dfb27e750f0ba4fa0f7754ec3a5d657c41cf9f41dbc7aead3a6b99 Binance Transaction Hash (Txhash) Details \| BscScan] (Aug 13)		<ref name="bscscan-2498">[https://bscscan.com/tx/0x50bfb24461dfb27e750f0ba4fa0f7754ec3a5d657c41cf9f41dbc7aead3a6b99 Binance Transaction Hash (Txhash) Details \| BscScan] (Aug 13, 2021)</ref>

	[https://bscscan.com/tx/0xc00da145ac76c16eda42c7945c78b8dc8a9a509a9583a8d0a2b6931632ef3b48 Binance Transaction Hash (Txhash) Details \| BscScan] (Aug 13)		<ref name="bscscan-2499">[https://bscscan.com/tx/0xc00da145ac76c16eda42c7945c78b8dc8a9a509a9583a8d0a2b6931632ef3b48 Binance Transaction Hash (Txhash) Details \| BscScan] (Aug 13, 2021)</ref></references>

Azoundria: Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/zapfinanceexitscam.php}} Zap FinanceZap Finance was another yield farming platform which ended up disappearing. All social media and the website disappeared, and investors did not get any recovery. This is a global/international case not involving a specific country. == About Zap Finance == "Zap Finance [was] a merge of Aave & Uniswap on Binance Smart Chain (BS..."

2023-01-25T19:46:13Z

Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/zapfinanceexitscam.php}} thumb|Zap FinanceZap Finance was another yield farming platform which ended up disappearing. All social media and the website disappeared, and investors did not get any recovery. This is a global/international case not involving a specific country. == About Zap Finance == "Zap Finance [was] a merge of Aave & Uniswap on Binance Smart Chain (BS..."

New page

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

[[File:Binancesecurity.jpg|thumb|Zap Finance]]Zap Finance was another yield farming platform which ended up disappearing. All social media and the website disappeared, and investors did not get any recovery.

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

== About Zap Finance ==
"Zap Finance [was] a merge of Aave & Uniswap on Binance Smart Chain (BSC) offering flash loans (Zap Loan) and DEX (ZapSwap) to users of BSC network." "Zap Finance marketed itself as a “De-Fi” lending and trading platform that aimed at a fair distribution through liquidity mining. This token promised aspects of frictionless yield generation and DEX AMM technology, which was all created piggy-backing off of other De-Fi protocols. The team began its launch on 1/28/2021, marketing the project’s fair distribution and the inception of liquidity rewards, which were all a sham."

"Stake LP tokens of Zap DEX and earn Zap tokens (ZAP)!" "Trade BEP20 tokens on ZapSwap securely on Zap DEX!" "Lend or borrow cryptos under a minute from Zap Loan!"

"Zap Loan offers a decentralised non-custodial liquidity market protocol where users can participate as depositors or borrowers. Depositors provide liquidity to the market to earn a passive income, while borrowers are able to borrow in an overcollateralised (perpetually) or undercollateralised (one-block liquidity) fashion."

"ZapSwap is a decentralized protocol for automated liquidity provision on Binance Smart Chain (BSC). Users can trade BEP20 tokens securely on ZapSwap."

"Zap Bridge offers safe and secure conversion of tokens between different networks such as ERC20 BEP20 and TRC20. Launching with BEP20 and next on timeline to launch it on ERC20 and bridge it."

"Zap Governance powered by Zap holders defines the rules for market participants, aiming to improve the challenging condition of lending protocol. Zap holders can participate in governance via governance proposals and voting and set protocol rules."

"Zap uses the codebase of RFI to offer frictionless yield to the holders of Zap tokens. Zap charges 1% fee on every transfer and instantly distributes the fee to token holders."

"Zap tokens are fairly distributed to the community via the farming pool. There was no presale or ICO or private sales. 90% of the token supply is allocated for farming and remaining 10% is allocated for the team."

"This Rug-Pull method is one of the most commonly seen on the BSC, where the smart contract receives permission for unlimited spending of LP tokens. Nearly hours after opening the liquidity pools, the team swiped all liquidity and swapped the funds for BNB and BUSD. The following transaction displays the swap done using community LP tokens for BUSD and BNB."

"Popcornswap, SharkYield, Zap Finance, Tin Finance, Multi Financial - be careful, exit scams." "In a few days, three projects (Zap Finance and Tin Finance, SharkYield) ran away."

"[A]nother bad story coming in this industry, because about three days ago this project created this announcement thread, but now this project gone." "They are decide to gone and completely delete all thing about zap finance, not just twitter and website but their telegram account also they delete, they make as if they never exist Grin It's good to see they finally realizing their readiness, still unable to put forward a proper project."

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 - Zap Finance Exit Scam
!Date
!Event
!Description
|-
|January 30th, 2021 12:00:00 AM
|First Event
|This is an expanded description of what happened and the impact. If multiple lines are necessary, add them here.
|-
|
|
|
|-
|
|
|
|}

== Total Amount Lost ==
The total amount lost is unknown.

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 ==
It is unknown how much was recovered.

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?

== Prevention Policies ==
Zap Finance was run by an anonymous team, possibly a single person of unknown background. The funds were not stored offline, nor in a multi-signature arrangement.

== References ==
[https://vc.ru/finance/203315-popcornswap-sharkyield-zap-finance-tin-finance-multi-financial-ostorozhno-ekzit-skamy-smi Popcornswap, SharkYield, Zap Finance, Tin Finance, Multi Financial — осторожно] (Jul 9)

[https://hacked.slowmist.io/en/?c=ETH%20DApp SlowMist Hacked - SlowMist Zone] (May 17)

[https://bscscan.com/token/0x80e3d8166e3c9a6e1c59363aaa125e9a729d4f2e Zap Finance (ZAP) Token Tracker | BscScan] (Aug 13)

[https://web.archive.org/web/20210128190627/https://zap.finance/ Zap Finance] (Aug 13)

[https://bitcointalk.org/index.php?topic=5312942.0 <nowiki>[ANN][DeFi] Zap Finance - DeFi Lending & Trading Platform on Binance Smart Chain</nowiki>] (Aug 13)

[https://www.bsc.news/post/liquidity-siphon-rugpulls-on-the-binance-smart-chain What Are Liquidity Siphon Rugpulls on Binance Smart Chain?] (Aug 13)

[https://bscscan.com/tx/0x50bfb24461dfb27e750f0ba4fa0f7754ec3a5d657c41cf9f41dbc7aead3a6b99 Binance Transaction Hash (Txhash) Details | BscScan] (Aug 13)

[https://bscscan.com/tx/0xc00da145ac76c16eda42c7945c78b8dc8a9a509a9583a8d0a2b6931632ef3b48 Binance Transaction Hash (Txhash) Details | BscScan] (Aug 13)