Crypto news

Binance introduces smart contract for $3M rug pull refund.

In response to the Xirtam rug pull incident, Binance, a prominent cryptocurrency exchange, has unveiled an automated smart contract designed to reimburse affected users.

As per Binance announcement on September 6, users impacted by the Xirtam rug pull can reclaim their funds by connecting their wallets to Etherscan,

completing a verification process, and executing the claim function using the contract address.

To qualify for the recovery by Binance , users were required to submit their applications by August 2.

“An investigation has been launched and action has been taken immediately. The suspected fraudulent funds have been frozen in the Binance account. We appreciate your patience and understanding while we work to resolve this issue.”

Xirtam, an Arbitrum-based project, managed to accumulate approximately 1,909 Ether, equivalent to $3.2 million,

from user deposits during a sequence of funding rounds.

This included two direct initial coin offerings (ICOs) and two community sales conducted through the Fjord Foundry liquidity bootstrapping pools and SushiSwap liquidity pools.

These funding efforts took place in April, and they contributed to Xirtam’s financial resources.

Arbitrum-based decentralized exchange (DEX) AlienFi canceled a planned Xirtam token initial airdrop offering (IAO) at the last moment after discovering an undisclosed Xirtam seed sale conducted at a considerably lower price than agreed upon.

The cancellation occurred just five minutes before the scheduled start of the IAO.

Following the successful capital raise, the project owners executed a rug pull maneuver,

depleting all assets from the Xirtam smart contract.

Interestingly, the funds were directly deposited onto Binance without passing through any mixer or bridging service for money laundering purposes.

Consequently, Binance took action and froze the stolen assets on May 4,

safeguarding them from further unauthorized use.

This additional information sheds light on the series of events surrounding the Xirtam project,

providing context to the aftermath of the rug pull incident.

https://twitter.com/binancezh/status/1699302863254818826?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1699302863254818826%7Ctwgr%5E124bdf41209ab71dbdddd366550c239ab570b752%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fcointelegraph.com%2Fnews%2Fbinance-creates-smart-contract-refund-users-affected-rug-pull

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