A Blockchain Firm Freezes $160K in Merlin DEX Rug Pull
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A Blockchain Firm Freezes $160K in Merlin DEX Rug Pull

written by John Murphy | May 5, 2023

According to recent news, CertiK has been in touch with law authorities in the US and the UK to track down fake identity operators.

From a decentralized exchange based on zkSync, Merlin has $160,000, and Smart contract auditor CertiK said to freeze them. Merlin was the target of a dishonest insider “rug pull” last week, which cost customers $1.8 million.

Keys Takeaways:

  • CertiK, a blockchain security company, seizes $160,000 taken in the “rug pull” on Merlin DEX.
  • CertiK is in touch with the law authorities of the US and UK to learn the identity of the fake operator.
  • Smart contract auditors shouldn’t be solely blamed for failing to spot rug pulls.
  • Marlin insiders took the use of the owner’s wallet privilege.
  • The company gave $2 million in compensation for the lost money.

CertiK updated its 257,700 Twitter followers on May 5 with the information that their attempt to freeze $160,000, the stolen cash, had been successful.

Merlin DEX Rug Pull

The company said that although it attempted to work with Merlin to retrieve the money it lost from the rug pull on April 25, the attempt was unsuccessful. Moreover, to learn the pseudonymous operators’ identity, the company decided to contact law authorities in the US and the UK.

CertiK highlighted that with the investment of $2M, we’re looking at every option to combat exit fraud. Regarding the exit scam, Marlin insiders used the privilege of the owner’s wallet.

Merlin DEX Rug Pull
Source: binance

This is compatible with the initial conclusion that it resulted from a private key problem rather than an exploit, according to CertiK.

Contrarily, CertiK claimed they were partially responsible for failing to adequately educate customers about the hazards associated with centralization.

However, CertiK emphasized that smart contract auditors shouldn’t be solely blamed for failing to spot rug pulls.

According to the company, not identifying a possible rug-pull but finding vulnerabilities is the goal of code audits. Acknowledging that centralization problems are arising in many big and small projects and that the bulk does not lead to a rug pull is crucial.

On April 27, the company introduced a $2 million compensation program to compensate for the money lost because of the “exit scam.”

The company noted that the funds contributed will be utilized to stop exit frauds and, where feasible, help victims.

Crypto Influencers React With Shock and Awe to Merlin DEX Rug Pull

Goalreify took to Twitter and announced that the Blockchain security company seized $160,000 taken in the “rug pull” on

crypto. news took to Twitter and made an announcement. The decentralized exchange Merlin, which uses zkSync and was recently the victim of an insider rug pull, reported having $160,000 in stolen assets. Blockchain security company CertiK revealed that it has successfully blocked those funds.

CryptoNewsMaker took to Twitter and announced that The CertiK successfully blocked $160K stolen funds in Merlin DEX.

Do You Know?

  • A blockchain security firm recently froze $160,000 stolen from an alleged “rug pull” in the Merlin DEX decentralized exchange.
  • The rug pull involved a malicious address that was used to withdraw funds without the permission of the exchange.
  • The security firm, PeckShield, was able to freeze the funds using the “freeze” function built into the decentralized exchange.
  • The freeze was successful despite the fact that the funds had already been transferred to other wallets.
  • This is the first time a blockchain security firm has successfully frozen funds that were part of a rug pull.

Crux

In recent news, CertiK, a blockchain security company, contacted the US and UK law authorities to identify the fake operator. CertiK freezes $160K taken in rug pull on Merlin DEX successfully. CertiK is trying to combat exit fraud with an investment of $2 million.

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