Binance creates smart contract to refund users affected by M rug pull

Cryptocurrency exchange Binance has created an automated smart contract to compensate users following the Xirtam rug-pulling incident.

According to a report on September 6 announcementusers affected by Xirtam carpet pull able Funds are received by connecting the wallet to Etherscan, passing validation checks, and calling the claim function via the contract address. Users must submit applications by August 2 to be eligible for reinstatement. The exchange previously wrote:

“We have received multiple reports of the XIRTAM incident and are fully aware of the seriousness of the matter,” the exchange previously wrote, adding:

“An investigation has been initiated and immediate action has been taken. The allegedly fraudulent funds have been frozen in Binance accounts. Thank you for your patience and understanding as we work to resolve this issue.”

Arbitrum-based Xirtam raised around 1,909 ethereum ($3.2 million) in user deposits in a series of funding rounds in April. This involved two direct ICOs and two community sales via the Fjord Foundry liquidity bootstrap pool and the SushiSwap liquidity pool.

In one example, Arbitrum-based decentralized exchange (DEX) AlienFi canceled a scheduled initial airdrop offering (IAO) of Xirtam tokens after discovering that an undisclosed Xirtam seed sale was well below the negotiated price. The IAO was canceled five minutes before its scheduled start.

Immediately after raising funds, the project owner orchestrated a pull that drained all assets in the Xirtam smart contract. However, all funds were deposited directly into Binance, prompting the exchange to freeze the stolen assets on May 4. No mixers or bridging services are used to launder funds before they are deposited into Binance.

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