• Mon. Mar 4th, 2024

The Xirtam DeFi project’s Developers Have Been Suspected of Participating in a Nearly $4 Million Swindle

Avatar photo

ByMarcel Bich

Jul 17, 2023
Xirtam DeFi developers suspected of fraud
Marcel Bich
Latest posts by Marcel Bich (see all)

The Xirtam blockchain project’s developers have been suspected of stealing 1909 ether (ETH) shortly after the fundraising round finished. First, the event was reported to a user known as @Cryptoenth20, who spotted a withdrawal of money raised to a third-party wallet.

The Research

Based on interpretation data, they attempted to launder the cash using 1inch before withdrawing them to a Binance-controlled wallet. The exchange, according to Chinese writer Colin Wu, froze the monies received.

Xirtam drew the interest of traders soon after the initiative was endorsed by the CultDAO community, and the token CULT skyrocketed 70% in value as a result of a tweet by American billionaire Elon Musk. CultDAO invested 13 ETH (about $24,700) in Xirtam since the idea fit inside its ecosystem. 

However, immediately after the theft of money in CultDAO, they announced their dissatisfaction with the project’s behavior. Simultaneously, they stressed that the notion to invest in a bogus enterprise was suggested by members of the community, not developers. By counting users utilizing the username @sssskhhhhj, roughly 4,000 investors invested in the project.

Xirtam positioned his target rather vaguely. According to the official website, the project was intended to be the first decentralized reputation system based on the Arbitrum sidechain. Developers encouraged the native token xirtam in order to grow the ecosystem. Against the backdrop of the announcement, the XIRTAM token price has increased by more than 10% to $0.0034, according to CoinMarketCap.

Stolen Funds

Initially, the editors reported that crooks stole more than $100 million from bitcoin investors’ wallets in April alone. Simultaneously, little under $10 million of the announced amount was lost to fraud activities. Merlin, a decentralized cryptocurrency exchange (DEX) whose clients lost $2.7 million. Platform representatives confirmed the incident but could not explain why. Participants in the crypto world believe Merlin staff are organizing the breach.

Avatar photo

Marcel Bich

Marcel ‘s passion for the world of cryptocurrencies and his comprehensive knowledge of blockchain technology make him an invaluable asset to our team. He stays updated on the latest trends, regulations, and emerging technologies in the crypto space, ensuring that our audience receives accurate and up-to-date information.