PolyWeed Withdrawal Fee Rug Pull

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PolyWeed

PolyWeed created a high yield staking platform, and then adjusted the withdrawal fees to remove funds to 98%, which basically trapped everyone's funds on the platform. As far as is known, users have not been able to get funds off, except 2% of them.

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

About PolyWeed

"We are glad to present PolyWeed, a complete brand new DeFi Yield Farming Platform, active on the recently growing Polygon Network. We are a fresh team of devolopers, willing to bring innovation and improvement in the extraordinary and highspeed world of Decentralized Finance."

"Polygon is a multi-chain system, which provides secure, fast transactions with extremely low transaction fees. We believe that being one of the earliest adopters of Polygon has given us an innovative edge against other platforms."

"PolyWeed was designed to be provably secure--please feel free to verify our source code. We have removed the commonly abused migrator code and added timelocks for full transparency and security.

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 - PolyWeed Withdrawal Fee Rug Pull
Date	Event	Description
June 5th, 2021 12:00:00 AM	Main Event	Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.

Total Amount Lost

The total amount lost has been estimated at $223,000 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

The total amount recovered has been estimated at $0 USD.

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

The key problem here was that the smart contract configuration was under the control of an anonymous individual, who had to be trusted to execute their role in the best interest of platform users.

If there was a reasonable way for a platform to launch without significant financial and regulatory burden, there would be much less incentive for legitimate innovative platforms to launch anonymously outside the system.