DeFi Project Defrauds Investors of $20 Million

DeFi Project Defrauds Investors of $20 Million

By Abhi K | News | 16 Sep 2020


Liquidity mining pool project Yfdexf.Finance has pulled an exit scam, defrauding investors of $20 million, according to a report by ZyCrypto published on September 10.

  • According to the report, Yfdexf.Finance had conducted a major advertising campaign on Twitter and Discord days before exiting the market
  • The project had been promising high levels of returns in a short time, which is a common scam used to lure unaware investors 
  • Posts on Twitter, Medium and Telegram have since been deleted
  • The DeFi market has been growing at an exponential rate, and many investors are looking to capitalize on short term gains
  • The mania has resulted in the release of several unaudited protocols; the YAM finance was found to have a critical bug that rendered over $500,000 inaccessible
  • Many industry insiders, like Vitalik Buterin, Changpeng Zhao and Erik Voorhees have criticized the DeFi market behaviour

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Abhi K
Abhi K

Technophile, cryptocurrency enthusiast and journalist.


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