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Clayton is suffering from a series of rug pools


Sep 12, 2022

Kakao blockchain platform Clayton is suffering from a series of rug pools (investment recovery fraud in which project developers suddenly stop and steal investment) and business suspension.

According to the virtual asset industry, new DiFi projects Kumu Finance and Clayland stole investors’ funds and disappeared.

Kumu Finance is a U.S. team that applied to participate in Clayton Hackathon and is a protocol that uses other Clayton-based Dex (decentralized exchange) to grow interest.

On the 7th, the situation of withdrawing assets from the wallet related to the Kumu Finance Foundation to Orbit Chain Bridge was detected, and the transmission of Korean Telegram chat messages was blocked. The amount withdrawn by the Bridge Foundation is estimated to be about $500 million.

Clayrend is a Clayton-based loan protocol, and was suspected of being a foreigner because the community manager used dim Korean. It attracted people by creating a Telegram community and forcing them to invite them. The project was launched on the 2nd and supplied about 100,000 tethers with initial liquidity to ClaySwap. However, the previous day, Clayland also revealed a rug pool situation in which funds were leaked to an unidentified wallet address when withdrawing.

A Clayland official said the ongoing withdrawal of funds was likely due to the acceptance of a request from Kumu Finance. There are about 40 investors each from the two projects, and about 80 victims seem to have been caused through the rug pool.

ClaySwap, the largest decentralized exchange based on Clayton, posted a notice on the rug pool, calling for caution, saying, “The rug pool of certain anonymous projects on the Clayton network is currently causing damage to users of the service’s assets.”

According to ClaySwap, asset theft is targeted at wallets that have approved contracts for the project. In the case of a wallet that has already been approved, he/she asked the Clayton Scope (Clayton Block Explorer) site to first remove the contract access permission and safely manage the precious assets they have.

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