An Ethereum-based decentralized finance protocol, Ordinals Finance, which allows its users to borrow and lend inscriptions, has been recently accused of scamming- which is referred to as a rug pull. In a press release on the 24th of April. CertiK, a blockchain security firm, went on to report that the developer of the protocol had pulled around 256 million OFI tokens out of the smart contracts using a function called SafuToken. Around 13 million OFI was removed through the function ‘ownerRewithdraw’, which brought the total number of tokens down to 269 million, as mentioned by the blockchain security firm.
Ordinals Finance Accused Of Scamming
According to CertiK, the blockchain security firm, the total loss that the investors faced was $1 million. Data from CoinGecko showed that the market capitalization for OFI was around $2.3 million before this alleged exit, but then it fell slightly to a sum of over $143,000 for Ordinals Finance.
This does imply that the losses were around $2 million. However, certain token owners of OFI might have also sold their tokens when this news broke, which could explain the lower amount that was being reported by CertiK. The data from Blockchain also showed that the deployer account of Ordinals withdrew close to 256 million OFI tokens through this function. The funds were then sent to a separate account of Ethereum through quite a few transactions.
Upon further investigation, it was revealed that after receiving the 256 million OFI, the deployer account had created 12 separate transactions where they swapped OFI for Ether. The deployer- or Ordinals Finance- had then transferred 85.5 ETH to the account that ended in cCF, at which point it was sent back to Tornado Cash.
