The BRC-20 token project OrdiZK was implicated in an exit scam stealing approximately $1.40 million in investor funds.
This fraudulent activity unfolded between March 4 and March 5, as the project deployer engaged in suspicious activities. These include token dumping and the extraction of Ethereum (ETH) under the guise of an ‘emergencyWithdraw’ maneuver.
How the OrdiZK Scam Unfolded
The scam involved the deployer offloading a staggering 489 million OZK tokens for $132,000. This sale caused an initial 98% price slippage.
The following day, an additional sale of approximately $214,000 tokens on another OZK contract resulted in a near-complete 99% slippage. This second sale decimated the token’s market value and investor confidence.
“We have seen an exit scam on OrdiZK. Website and social media accounts have been deleted. The deployer holds around $1 million worth of ETH from dumping tokens, removing ETH from project contracts, and taxes from sales,” blockchain security company Certik said.
Read more: What Are BRC-20 Tokens? Everything To Know in 2024
Currently, the deployer’s stolen gains stand at 277 ETH, worth approximately $1,033,882.98, and an additional 70 ETH, worth $262,796.28. These funds are in the project’s treasury wallet, and a further $173,899.48 is in the project’s marketing wallet.
Compounding the deceit, OrdiZK has since obliterated all traces of its online presence by taking down its official website and deleting social media accounts. This has left investors and stakeholders in shock and disbelief.
Read more: Top 5 BRC-20 Platforms To Trade Ordinals in 2024
This incident casts a long shadow over the integrity of BRC-20 token projects, It also highlights the imperative need for investors in BRC-20 and other crypto tokens to exercise heightened diligence. Investigative efforts are ongoing as the crypto community and regulatory bodies rally to address the repercussions of such scams.
The post BRC-20 Token Bridge Conducts $1.40 Million Exit Scam appeared first on BeInCrypto.
