In recent news, the SeaSwap DeFi protocol, operating on the newly launched Sui network, has left investors in a state of shock as it mysteriously vanished from the social media landscape. CertiK, a prominent blockchain security firm, discovered that the founders of SeaSwap executed an emergency withdrawal of SUI from the project’s token sale contract, resulting in the disappearance of approximately $32,000 worth of assets.
#CertiKSkynetAlert 🚨— CertiK Alert (@CertiKAlert) May 26, 2023
We are seeing an exit scam from @SeaSwapSui, which has deleted Twitter and abandoned social channels.
The admins invoke emergency withdrawal of SUI from the token sale contract for a total of 32787 SUI ($32k).
More information 👇https://t.co/vAFrLNtbbU
Crypto Economy, delving deeper into the matter, conducted its own investigation and found that the project’s social media presence, including its Twitter account, has become completely inaccessible. Additionally, the project’s Discord server has been deserted by both administrators and moderators, leaving a cloud of uncertainty hanging over the entire venture.
Furthermore, Suipiens unearthed multiple red flags, indicating fraudulent activities. Critical functionalities on the SeaSwap website, such as liquidity and APR figures, turned out to be either fake or non-functional.
1/ The project's domain was only registered 5 days before the Sui Mainnet. And get this, Seaswap's first posts were made on 21/4/2023. Like, seriously? If you ask me, it's kinda weird for any project that wants to stay long-term to be in a rush to register their brand like this. pic.twitter.com/KUymAlXAEj— Suipiens.sui 🦍💧 (@suipiens) May 22, 2023
Prior to its disappearance, SeaSwap promised to be a decentralized exchange built on the Sui blockchain, offering fast and secure cryptocurrency trading. It attracted investors by highlighting additional income opportunities through liquidity provision and staking. However, further scrutiny exposed red flags, including fake or non-functional features on the project’s website and alleged plagiarism in its documents. Despite attempts to seek clarification, the SeaSwap team remained unresponsive.
This incident serves as a reminder of the risks associated with investing in the cryptocurrency and decentralized finance space. It highlights the importance of conducting thorough research and due diligence before committing funds to any project. While such events can tarnish the industry’s reputation, they also emphasize the need for increased scrutiny and improved security measures. Moving forward, it is crucial for regulatory bodies and industry participants to collaborate in establishing frameworks that protect investors and foster responsible innovation.
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