As Polygon Network is growing, scam activity migrates to this high-performance platform and latest victim is PolyButterfly

After incidents of attacks on Binance Smart Chain, recently, the target of hackers is Polygon. Yesterday, Polygon-based decentralized financial protocol PolyButterfly disappeared.

Polygon-based decentralized financial protocol PolyButterfly disappeared

With more and more DeFi launching on Polygon (MATIC), rug pulls are popping up more and more. DeFi rug pulls are a new form of exit scam whereby crypto developers abandon a project and run away with investors’ funds by taking away buy support or Decentralised Exchange (DEX) liquidity pool from the market.

And that’s how scammers are getting ahold of investor’s money.

After users notice PolyButterfly has disappeared, almost all its social media platforms also disappeared. Specifically, its website was shut down and its Twitter account and Telegram chats were deleted.

After PolyButterfly’s drama, the RugDoc team discovered three potential rug pull designs in several Polygon-based DeFis as below:

Specifically, Taba Finance has hard-coded a tool that allows it to strip all liquidity from the BEP-20 token. The Aura Finance team can transfer LP tokens to a specific “rescue address”, while PolyWeed DeFi does 98% of the withdrawal fees.

And the team also lists the following harms:

  1. Create a pool with a token only you own and deposit a bazzilion token
  2. Update the new pool’s token to MATIC
  3. Withdraw the MATIC with your existing balance
  4. Repeat 3,4 for all tokens

Just one extra parameter allows the owner to steal all funds. Give ownership to a proxy contract that does not allow to change the token of an existing pool.

There has been a crazy uptick in hard rugging 100% loss farms lately. According to RugDoc DeFi transparency enthusiasts, scammers have stolen more than 600 ETH, or more than $1,500,000.

As such, the clients of this DeFi protocol can withdraw nothing but 2% of the funds locked into PolyWeed.

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