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Binance Develops a Smart Contract to Reimburse Users Hit by a $3M Xirtam Rug Pull


Binance investigating Xirtam Rug Pull

In a proactive response to the Xirtam rug pull incident, Binance, a leading cryptocurrency exchange, announced on September 6th that affected users now have the opportunity to recover their funds.

Users can initiate the reimbursement process by connecting their wallets to Etherscan, completing a verification check, and executing the claim function through the designated contract address. This automated smart contract implementation signifies Binance's commitment to addressing the fallout from the Xirtam incident and providing a swift resolution for affected users. However, to be eligible for recovery, users were required to submit their applications by August 2nd. In April, Xirtam, which operates on the Arbitrum blockchain, garnered approximately 1,909 Ether, equivalent to $3.2 million, through a sequence of funding rounds. These rounds comprised two direct initial coin offerings and two community sales conducted through the Fjord Foundry liquidity bootstrapping pools and SushiSwap liquidity pools.


During the fundraising phase, a significant incident unfolded when the Arbitrum-based decentralized exchange, AlienFi, abruptly canceled a scheduled Xirtam token initial airdrop offering (IAO) just five minutes before its commencement.

The cancellation was prompted by the discovery of an undisclosed Xirtam seed sale conducted at a significantly lower price than previously agreed upon. This raised concerns within the cryptocurrency community regarding the transparency and integrity of the Xirtam project.


After successfully raising capital, the Xirtam project owners executed a rug pull, maliciously draining all assets from the Xirtam smart contract, according to the Cryptopolitan. What distinguishes this incident is that the stolen funds were directly deposited into Binance, bypassing the typical methods used for laundering ill-gotten gains; this direct deposit enabled Binance to identify and freeze the stolen assets on May 4th, preventing further dispersal of the misappropriated funds, the report added.

 

DISCLAIMER: This article is solely for informational purposes and not for financial, investment, or trading advice, and should not be relied upon for making decisions. Furthermore, thecryptoverse.online has no positions in the cryptocurrency mentioned in this article. For more see our full disclosure here.


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