BRC-20 Token Bridge Experiences $1.40 Million Exit Scam
The BRC-20 token project, OrdiZK, recently came under scrutiny as it was discovered that the project’s deployer had conducted an exit scam, resulting in the theft of approximately $1.40 million in investor funds. The fraudulent activities took place between March 4 and March 5, with the deployer engaging in suspicious actions such as token dumping and extracting Ethereum (ETH) through an ’emergencyWithdraw’ maneuver.
The scam unfolded when the deployer offloaded a staggering 489 million OZK tokens for $132,000, causing a significant 98% price slippage. The following day, an additional sale of approximately $214,000 tokens from another OZK contract resulted in a near-complete 99% slippage. This second sale not only decimated the token’s market value but also shattered investor confidence.
Blockchain security company Certik confirmed the exit scam, stating, “We have seen an exit scam on OrdiZK. Website and social media accounts have been deleted. The deployer holds around $1 million worth of ETH from dumping tokens, removing ETH from project contracts, and taxes from sales.”
The deployer’s ill-gotten gains currently amount to 277 ETH, equivalent to $1,033,882.98, and an additional 70 ETH, worth $262,796.28, stored in the project’s treasury wallet. Furthermore, there is approximately $173,899.48 in the project’s marketing wallet. To compound the deception, OrdiZK has erased all traces of its online presence by shutting down its official website and deleting social media accounts, leaving investors and stakeholders in shock.
This incident raises concerns regarding the legitimacy of BRC-20 token projects and emphasizes the need for increased diligence from investors in BRC-20 and other crypto tokens. The crypto community and regulatory bodies are working together to investigate the scam and address its consequences.