SwapRum Rug Pull

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SwapRun 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.

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."

"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.

Multiple users on Twitter expressed support and excitement for the project, while others helped to promote it.

good project...and good investasi.....bravo @Swaprum

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, including a reported inability to withdraw funds.

Why does the claim not accumulate in the balance section?

Why hasn't the token been deposited into my wallet after a few days of requesting a withdrawal?

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 - SwapRum Rug Pull

Date	Event	Description
May 17th, 2023 7:52:00 PM MDT
May 18th, 2023 9:52:12 AM MDT	Liquidity Drained	Transaction to drain liquidity.
May 18th, 2023 9:48:00 PM MDT	PeckShield Alert Triggered	A PeckShield alert is triggered. The alerts is retweeted by the Web3 Watchdog and pSquare_Daily. 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.
May 19th, 2023 4:01:00 AM MDT	Report on Twitter	Describe the event.
May 19th, 2023 4:36:00 AM MDT	The Block Article	The Block publishes an article on the situation. TBD get summary.
May 19th, 2023 10:34:00 AM MDT	Crypto Purity Article	Crypto Purity reports on the situation. TBD more summary.

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 $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?

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.

swaprum finance deactivate their twitter account?

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

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

Just got rugged on Swaprum. Site and discord is still up. A lot of work for 1 million

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.

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!

@Swaprum he deceived us all, we fulfilled all the conditions, but they threw us .. do not believe this is ophirists

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.

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

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.