Zap Finance Exit Scam

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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.

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.