Popit Finance Rug Pull

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Popit Finance

Banking partially on the goodwill of people wishing to support LGBTQ rights, Popit Farms launched a smart contract which had a backdoor that allowed the draining of all funds.

After this was reported, they used the exploit to steal all funds, and removed most social media. popit.farm presently redirects to a McDonald's hiring page.

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

About Popit Finance

"The world is a dark, stressful and demanding place. That is where we come in." "Popit Finance is the #1 anti-stress, multi-asset, deflationary and self-regulating farm running on Binance Smart Chain." "Popit is the Future of ILO and fair launching! We support equality towards every project & individual." "We are building the ILO platform of the future and treat every project and individual equally. We also donate 0.5% of all transactions to LGBTQ+ Organizations."

"Website, token & farming launch will be announced live on June 18th, 2021. Everybody in the community will have equal chances to participate! Our goal is providing a more friendly farming experience and ultimate project support." "Main features: – HIGH YIELD FARMING – DEFLATIONARY AUTO BURN – AUTO BUYBACK – REFERRAL BONUS – WEEKLY DONATION TO LGBTQ+ ORGS – CROSS-CHAIN" "Popit Finance Farm & DEX run on Binance Smart Chain, a blockchain with much lower transaction costs than Ethereum or Bitcoin, comparable to major exchanges."

"After DEX launch, 0.05% trading fee will be used to buy back POPIT as a weekly growth fund, rewarded to winning projects. Use POPIT to vote for your ideal projects, help them grow." "No presale or team allocation, all tokens are distributed to the community on a fair basis." "Unlike centralized exchanges like Binance, Popit Finance Farm & DEX doesn’t hold your funds when you trade: you have 100% ownership of your tokens, and you can trade directly from your wallet." "Farming Starts 25 June 2021, 08:38 am UTC"

"Popit Finance has a migrator and owner's an EOA – it can rug at any time!" The "migrateCakeLPsToPopitSwap() function allows [the] owner to transfer funds to any address." "The MasterChef contract contains the migrateCakeLPsToPopitSwap function that allows the contract owner (not a TimeLock) to transfer LP tokens to any address, resulting in a possible rug pull at any time. Be cautious and DO NOT engage."

"Owner wallets are already cashing out." "[L]ooks like its happening. [T]witter account deleted. [Telegram] muted. [H]uge price dump." "The Github account (popit-farm) linked to this project previously existing account has been removed." "Website link takes to McDonalds website."

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 - Popit Finance Rug Pull

Date	Event	Description
June 21st, 2021	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

The project was launched by an anonymous team, which had no background check. Funds were stored in a smart contract hot wallet. There was no multi-sig or validation of any kind on withdrawals.

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.