According to Arbitrum network analysis, the Swaprum Decentralized Exchange team has withdrawn all customer deposits totaling 1,628 ETH, equivalent to $3 million, from the platform’s liquidity pools over the past 24 hours.
The Swaprum team withdrew liquidity in exchange for the Swaprum platform’s own token (SAPR) and then sold all SAPR tokens for ETH, causing their market value to plummet entirely.
The Swaprum team diverted the proceeds from the Arbitrum network to the Etherium network and sent them to the Tornado Cash cryptomixer to cover up traces of the theft.
Commenting on the event, security experts at Beosin reported that Swaprum developers used the add () backdoor feature to steal LP tokens supplied by users and then removed the liquidity from the pool for profit.
Experts say Swaprum’s digital footprint virtually disappeared overnight, and social media accounts on Twitter, Telegram, and GitHub were deleted.
Earlier, Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam said decentralized exchanges (DEX) should be subject to regulatory oversight, whether they operate autonomously or with human involvement.