An ethereum user was scammed out of $140,000 in Uniswap (UNI) tokens after attempting to yield farm a fake DeFi project.
According to a series of tweets by ZenGo researcher Alex Manuskin, an anonymous user dubbed “Jhon Doe” was scammed out of $140,000 worth of UNI governance tokens after attempting to yield farm the protocol UniCats.
Manuskin speculated Jhon Doe thought they had hit on the next big thing in DeFi with UniCats, rather than stumbling across a scam. The anonymous user transferred UNI to the unknown protocol and began farming “$MEOW” with the intention of turning a profit.
However, when Jhon attempted to withdraw their deposited tokens they encountered the scam setup created through the protocol’s smart contract. According to Manuskin, the UniCat contract allows the platform to withdrawn tokens at any time, resulting in a “rug pull” scam.
Manuskin explained how the contract was able to transfer Jhon’s deposited Uniswap tokens, resulting in the loss of more than 36K UNI ($140K).
The ZenGo researcher also explained that UniCat generates a new contract for each victim allowing the platform to continue scamming users out of their deposited funds.
Featured Image Credit: Photo via Unplash.
Credit: Source link