LV Finance Exit Scam

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This fraud appears to have been executed so quickly that no record of the site or even a logo are subsequently available.

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

About LV Finance

"The organizers of LV Finance described the project as a "community-owned DeFi ecosystem" based on the Ethereum blockchain." "In the near future they promised to launch genesis-farming." "The organizers of the DeFi project LV Finance faked the results of audits in order to steal investors’ money, according to the analytical company SlowMist."

"[A]lmost all DeFi cryptocurrencies first appear on Uniswap . However, the DEX does not have a strict listing procedure. Anyone can issue a token and add it to Uniswap. In this regard, the scammers take advantage of the "profit hunt" of the traders and try to download them coins without real projects and development teams."

"After investors deposited their funds, they found they could not withdraw. The team has since disappeared, and the website was down at the time of writing."

"On September 20th, according to the intelligence of the slow fog area, the Ethereum mining project LV Finance project was suspected to have gone away. In less than an hour, 4 million people were transferred away. The project used fake audit websites and provided false audit information to trick investors Invest and run away when the amount in the fund pool is large enough after a period of time."

"On September 19, a Twitter user reported he was unable to withdraw his funds from LV Finance. He tried to contact the project through its Telegram channel, however, he was blocked by the administrators of the channel. According to SlowMist, the project organizers have disappeared shortly after raising funds from users. The official site of the LV Finance project is offline at the moment and the social network accounts of the project have been removed."

"Currently, the project website lv.finance is no longer accessible." "[S]ocial media accounts have been deleted."

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.

Key Event Timeline - LV Finance Exit Scam

Date	Event	Description
September 19th, 2020	Main Event	Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.

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 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

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?

General Prevention Policies

Having some level of oversight and approval on projects can give consumers a tool to avoid completely fraudulent projects.

Individual Prevention Policies

No specific policies for individual prevention have yet been identified in this case.

For the full list of how to protect your funds as an individual, check our Prevention Policies for Individuals guide.

Platform Prevention Policies

Policies for platforms to take to prevent this situation have not yet been selected in this case.

For the full list of how to protect your funds as a financial service, check our Prevention Policies for Platforms guide.

Regulatory Prevention Policies

No specific regulatory policies have yet been identified in this case.

For the full list of regulatory policies that can prevent loss, check our Prevention Policies for Regulators guide.