Binance Refunding $3M to Victims of Xirtam Rug Pull
Binance takes action after Xirtam rug pull, sets up automated smart contract to refund affected users. Eligibility deadline applies.
Binance, one of the world's leading crypto exchanges, has recently taken a commendable step to address the incident. Following the Xirtam rug pull, Binance has set up an automated smart contract to refund the affected users.
The exchange has developed an automated smart contract that aims to reimburse the affected users. As per the announcement on September 6, victims of the scam can retrieve their funds by:
- Connecting their wallets to Etherscan
- Undergoing a verification process
- Invoking the claim function using the contract's address
However, there's a catch. Only those users who submitted their applications by August 2 are eligible for the refund.
Xirtam, operating on the Arbitrum network, managed to amass approximately 1,909 Ether, which translates to around $3.2 million, from user deposits in April. The fundraising methods included two direct initial coin offerings (ICOs) and two community sales through platforms like Fjord Foundry and SushiSwap liquidity pools.
But things took a turn for the worse when a planned Initial Airdrop Offering (IAO) by Xirtam was suddenly called off. AlienFi, an Arbitrum-based decentralized exchange, was set to facilitate this IAO. However, just five minutes before its launch, AlienFi discovered a hidden seed sale by Xirtam, which was priced much lower than what was previously agreed upon.
Following the fundraising rounds, the project's owners executed the rug pull, siphoning off all assets from the Xirtam smart contract. What caught everyone's attention was the direct transfer of these stolen funds to Binance. Recognizing the suspicious activity, Binance acted swiftly, freezing the assets on May 4. It's worth noting that the culprits didn't employ any services to hide the funds' origins before making the deposit on Binance.
Binance has always been vocal about its commitment to user safety. Addressing the Xirtam incident, the exchange stated:
"We have received several reports about XIRTAM incidents and understand the gravity of the situation. Immediate action has been taken, and an investigation is underway. The suspicious funds have been frozen in the Binance account. We thank you for your patience and understanding as we work to resolve this issue."