IBXtrade / Artic Promoted Platform Rug Pull

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IBXtrade Logo/Homepage

IBX Trade appeared to be a platform which had billions under management and a whole host of active clients investing in a wide range of assets. They had participated in Orderly Network's incubation program, which created an impression of legitimacy, and Orderly Network shared information about the project on multiple occasions. However, the team decided that instead of launching the project they would rather keep investor money. Orderly Network distanced themselves entirely from the ordeal and investors appear to be entirely out by all invested funds.

About IBX Trade

"Invest, Trade, Win! IBX Trade is your trusted partner in the world of financial markets. We offer a wide range of trading instruments including stocks, indices, currencies and commodities so you can build a portfolio. Our platform is designed to provide fast and reliable access to the markets, while low commissions and high liquidity make trading the best possible experience for you."

"$15 Billions In client assets and funds This guarantees the stability and reliability of our financial platform. Your funds are protected!

140+ Financial instruments. A rich selection of assets allows you to diversify your portfolio by investing in different industries!

1:20 Maximum leverage The financial indicator represents the ratio of borrowed funds to own assets on the trading account."

"IBX TRADE Reliable partner for 70k+ clients"

"Personalized control Use an investment portfolio management method that takes into account each investor's personal preferences.

User Asset Security Compliance with all mandatory regulatory requirements to ensure legality and security for users.

Confidentiality and encryption Using TLS protocols and implementing two-factor authentication to improve login security."

About Orderly Network

"We recently onboarded @IBXtrade. We are now running a trading competition for IBX users with a cool 7000 USDC up for grabs, plus an Orderly NFT."

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 - IBXtrade / Artic Promoted Platform Rug Pull

Date	Event	Description
April 19th, 2024 6:52:19 AM MDT	coolestg123 Article	coolestg123 discusses the new IBX Trade broker as a decentralized trading platform. The article is overall positive.
April 24th, 2024 7:00:00 AM MDT	IBXTrade Onboarding	"We recently onboarded @IBXtrade. We are now running a trading competition for IBX users with a cool 7000 USDC up for grabs, plus an Orderly NFT."
October 8th, 2024	Orderly Denies Responsibility	"On October 8, Orderly Network responded to the “IBXtrade suspected rug” issue on X saying, “Orderly Network has never supported IBXtrade or its tokens. We are actively investigating the situation and will take the necessary steps to support the community. In the meantime, we are severing any future ties with IBXtrade."
October 17th, 2024 1:30:49 PM MDT	Bitget Article	Bitget reports that the Orderly Network has severed all ties with IBX Trade.
October 18th, 2024 1:47:00 AM MDT	Orderly Denies Responsibility	Orderly Network again denies responsibility and connection to the project. They mention that they are ceasing all future communication.
October 20th, 2024 9:39:00 AM MDT	Artic And IBX Separate	A discussion on X clarifies that the IBX and ArticTrade teams are officially separate.

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 $21,800,000 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

"On October 8, Orderly Network responded to the “IBXtrade suspected rug” issue on X saying, “Orderly Network has never supported IBXtrade or its tokens. We are actively investigating the situation and will take the necessary steps to support the community. In the meantime, we are severing any future ties with IBXtrade."

"DeFi analyst Anon Vee posted on X that several users have reported that the Orderly Network ecosystem project IBXtrade is suspected of a rug pull. It is reported that IBXtrade launched a pre-sale three days ago with a target to raise 2,000 SOL (approximately $3.2 million) and refund any unselected participants. The pre-sale ended up raising over 160,000 SOL (about $24 million), with participants originally expecting the project to return $21.8 million. However, instead of issuing refunds, the IBXtrade team created a poll on a website entirely under their control, asking whether the pre-sale cap should be raised. The poll eventually passed, and IBXtrade claimed to have refunded 65,000 SOL ($9.7 million) to participants."

"However, the situation took a dubious turn when IBX’s team conducted a poll on a website fully controlled by them, asking participants whether to raise the funding cap or adhere to the original limit. The poll resulted in a decision to increase the cap, allowing the team to refund only 65,000 SOL (around $9.7 million). The team claimed to have issued these refunds, but reports from participants indicated that not a single person in the comments section received the promised amounts."

"Adding to the controversy, the IBX team swiftly launched a new token called ARTIC, debuting with a market capitalization of $50 million. However, before presale participants could claim their tokens, the market cap plummeted to $6 million, raising questions about the integrity of the operation. The claim page for ARTIC was not created until after the launch, further compounding suspicions.

Exchanges such as MEXC and LBank have listed ARTIC, but the community remains frustrated and skeptical. Many participants are calling for refunds or legal action, expressing their discontent with the lack of accountability from the IBX team."

"PANews News on October 18th, according to the Orderly Network official, Orderly Network denied support for IBXtrade or its related tokens, and stated that any claim that Orderly hatched the project was false information. Officials say they are currently actively investigating the situation and will take necessary measures to protect the interests of the community. At the same time, Orderly Network announced that it would cut off any future cooperation with IBXtrade."

"Orderly Network did not back @IBXtrade or their token. Any claims suggesting otherwise are false. We're actively investigating the situation and will take the necessary steps to support the community. In the meantime, we're cutting off any future involvement with @IBXtrade."

"According to Twitter users @AnonVee_ breaking news, IBXtrade is suspected of a drug scam recently. IBX started pre-sale three days ago, and originally planned to raise US$3.2 million, and promised to refund the funds of the unselected participants. However, the pre-sale actually raised more than 160,000 SOL (approximately US$ 24 million), and is expected to refund US$ 21.8 million. The project team initiated a vote on the website under its control to ask whether to increase the pre-sale ceiling. As a result, the ceiling was increased and only 65,000 SOL (approximately US$9.7 million) were returned. The team is said to have refunded, but the actual funds were transferred to multiple team self-built addresses, and no investor confirmed receipt of the refund.

In addition, the team created the ARTIC tokens at 6:16 am UTC time, and added liquidity at a market value of $50 million. Subsequently, the market value fell to $6 million, and investors still failed to receive the replacement currency in time. ARTIC is online MEXC and LBank."

ChainCatcher message, in response to the allegations of "suspected rug," IBXtrade stated on X: "We understand the current dissatisfaction in the community and are working hard to address it. We will do everything we can to resolve the issue and will share the next steps as soon as possible. Orderly is not related to the issuance of the token; this token issuance is entirely executed by the IBX and Artic teams."

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?

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.