Binance Launches Smart Contract to Refund Rug Pull Victims

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Binance Unveils Automated Smart Contract for Refunding Victims of Xirtam Scam

Written by Gile K.,

Market Sentiment Analyst

Last Updated: September 07, 2023

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Binance Unveils Automated Smart Contract for Refunding Victims of Xirtam Scam

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Binance is giving a helping hand to users who lost funds in Xirtam rug pull.

Binance, the leading cryptocurrency exchange, has taken proactive measures to address the financial losses suffered by users in the wake of the Xirtam rug pull scam.

In response to the recent fraudulent activities surrounding the Arbitrum-based Xirtam project, Binance rolled out a smart contract designed to refund impacted users.

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According to a statement released on September 6th, users can claim their refunds by linking their wallets to Etherscan, completing a verification process, and then executing the claim function within the smart contract.

The deadline for filing applications for this recovery mechanism was set for August 2nd.

Binance had previously issued a statement acknowledging the gravity of the situation.

An investigation has been launched and action has been taken immediately. The suspected fraudulent funds have been frozen in the Binance account. We appreciate your patience and understanding while we work to resolve this issue.

Xirtam had amassed roughly 1,909 Ether (ETH), equivalent to $3.2 million, from users across multiple fundraising activities, including two initial coin offerings and community sales via the Fjord Foundry and SushiSwap liquidity pools.

After securing the funding, the individuals behind the Xirtam project executed a rug pull, wiping out all assets in the project’s smart contract. Notably, these funds were transferred to Binance, which took swift action to freeze the assets on May 4th, preventing further laundering of the stolen funds.

Binance's introduction of an automated smart contract to provide reimbursements is a significant move to restore user confidence after the Xirtam rug pull scandal. This measure, along with the immediate freezing of suspicious funds, shows Binance’s commitment to user security and its proactive approach to mitigating risks in the ever-volatile cryptocurrency landscape.