Ethereum-based DeFi protocol Ordinals Finance deleted its online presence after emptying its smart contracts.
Blockchain security firm CertiK alerted users to an exit scam orchestrated by Ordinals Finance on April 24. An exit scam, or rug pull, is when a project’s creators abscond with their investors’ funds by draining all liquidity.
We can confirm that the @ordinalsfinance exit scam has resulted in a loss of $1 million.
All social media accounts have been deleted as well as the project's website.
— CertiK Alert (@CertiKAlert) April 24, 2023
Ordinals Finance is an Ethereum-based protocol that claims to facilitate the borrowing and lending of Bitcoin Ordinals inscriptions, although the two have no official association. The project has now deleted its social media presence, including its official Twitter handle and website.
On-chain data shows that the Ordinal’s deployer address pulled 256 million OFI tokens from the project’s smart contracts and swapped them for ETH through multiple transactions. Another 13 million OFI tokens were withdrawn through an “ownerRewithdraw” function, which seemingly allowed the deployer address to pull all the staked tokens from the contract.
CertiK reported that the total loss from the rug pull was 550 ETH, worth around $1 million. The funds are now being laundered through coin mixer Tornado Cash, according to on-chain data.
Ordinals Finance’s native token OFI had a market cap of $2.3 million as of Monday, but a 95% price decline that followed news of the exit scam likely made the funds drained worth closer to CertiK’s estimates.