By Tim Hakki
Investors in the recently-launched DeFi yield aggregator, Luna Yield, fear that the developers of the cross-chain project ran off with about $6.7 million in customer funds on Thursday, just two days after launching.
An anonymous source told Coindesk that the Luna Yield developers had made off with approximately $6.7 million in crypto assets through a Solana address that deployed the original Luna Yield contract. The project’s website is now offline and its social media presence erased.
The address signed multiple transactions for large amounts of WBTC, WETH, LUNY and USDT to be transferred into an anonymous Tornado wallet.
so… looks like @luna_yield just rug pulled on the solana ecosystem
— hoakegani (@hoaktrades) August 19, 2021
Luna Yield launched on Tuesday through the multichain Solana-powered fundraising platform SolPAD. It was SolPAD’s second “IDO” after Solstarter. An IDO, or initial dex offering, is when a blockchain project sells a new cryptocurrency—in this case LUNY—on a decentralized exchange to raise money.
Following the subsequent blackout of Luna Yield’s social media channels, almost 200 investors banded together on Telegram and vented their frustration in the ‘Luna Yield RUG PULL’ Telegram channel.
A ‘rug pull’ is a crypto exit scam. It often happens when a newly-launched decentralized finance project runs off with investors’ funds. Scam projects often promise high yields to bait investors.
SolPAD has been quick to respond on all channels. A spokesperson on Telegram said the platform was “collecting proof” of Luna’s alleged rug pull, which could make an “enormous impact on investors” and its community.
Update on the compensation plan:
After internal discussion within Solpad Foundation, we have finalized the compensation plan for Luna Yield IDO participants.
— SolPAD (@FinanceSolpad) August 21, 2021
SolPAD said that it will compensate Luna Yield IDO participants in US dollar stablecoin USDC “with a value equal to 60% of the purchased amount.”