TurtleDex Performs a Liquidity Siphon Rugpull After a Highly Anticipated Launch

It’s becoming increasingly risky to invest in Defi-based projects. The latest rugpull being the TurtleDex platform. The situation comes shockingly to everyone due to the organic hype the project has achieved.

Wilfred Victor
March 19, 2021
BSC News

About TurtleDex

TurtleDex touted itself as a decentralized storage platform for users. It deceived users as a “big data protocol” to help users keep data and preserve files without needing to keep them on their computer. The platform product launch was met with high expectations and excitement. The team raised their entire pre-sale round in just two hours on Monday 15th. That’s how much enthusiasm and hype the project realized.

The team opened their liquidity pools on two major BSC DEXs: Pancakeswap and Apeswap. TTDX tokens were unlocked and opened to circulation on March 18th at 15:00 UTC. And the price quickly pumped above its pre-sale value.

The Rugpull Event

How was the rugpull achieved? The incident was first reported in the following Tweets by Twitter user DefiStalker:

Liquidity on both @ape_swap & @PancakeSwap has been removed 10hrs ago & swapped to $ETH, split to 9 wallets, all sent to @binance$TTDX looks like it’s about to #RugPull just 24hours after pre-sale @BinanceChain.”

A BSCscan activity from the team’s wallet shows the actual movement of the swapped $ETH into the Binance Exchange CEX platform.

As of this report’s time, the website is now offline, and the telegram group placed on mute. The admins’ accounts on the group have been permanently deleted.

Telegram Group Admins are showing Deleted Accounts.

TurtleDex Website

This is a well-thought-out and organized rugpull event and a sad day for numerous believers of the investing community. This event increases the fear, uncertainty, and doubt of many novice users who are still fearful of investing in crypto-assets—a bad day for the blockchain community in reality.

Users and Investors Reactions

The event has been expressed with complete disappointment from a lot of users. Many users are pointing accusing fingers at Apeswap and JetfuelFinance for partnering with TurtleDex. While partnerships were existent they were solely liquidity incentives and no token sale occurred. Further, JetFuel has delisted the token. For those who wish to learn more about the action JetFuel took, refer to this medium Medium post.

Editors note: It was initially stated that JetFuel had performed a token sale or IJO for the TTDX token but this information was incorrect and has since been amended

It is alsoworthy of note that JetfuelFinance has issued both an official tweet and post immediately it got wind of the rugpull event and has taken further steps to launch a fund recovery process by opening two Telegram groups HERE and HERE.

Possible Recovery

There might be some glimmer of hope for the TurtleDex investors following the active recovery process of the JetfuelFinance team. Also, recall that BSC chief CZ tweeted Binance Chain previous stance on rugpull events and efforts to thwart successful malicious events in the future.

Users will have to keep their fingers crossed and hope the funds sent to Binance Exchange get frozen as it’s usually done for rugpull funds in the past.

In Conclusion

The investing community must do their research before investing in any project correctly. Projects are becoming quite rampant on the BSC network. Scammy ones, empty without substance, offering various forms of RFI services and what have you.

A credible way of identifying these scammy projects with the intention to rugpull users funds is that they often don’t have the following:

  • Functioning website (if available its hosted on a cheap blog site like WordPress or a one-pager)
  • Roadmap
  • Whitepaper
  • Public team
  • And a clearly defined path

For those who wish to learn more about Rugpulls and DeFi security check out the following articles:
How To Spot a Potential RUG — Clear signs something is sketchy

How to Keep Your Funds SAFE — MetaMask Guide

Take care with your investment and always stay SAfe on your FUnds (SAFU).

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Wilfred Victor

Ace finds himself as a blockchain enthusiast who is focused on growing with the entire crypto sector. He is an energetic and passionate writer who believes that all things are achievable.

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