Developers of the Sharktron defi project have exit scammed with reports suggesting that TRX tokens worth up to $10 million are missing. The Tron Foundation has confirmed the theft, but is quick to inform Sharktron token holders that a portion of the missing funds has been frozen. The exit scam comes a few weeks after the Sharktron devs issued a press release inviting investors to buy the token.
Binance Freezes Part of Stolen Funds
However, Justin Sunâ€™s Tron Foundation, seemingly eager to get past this event, has issued a response on Twitter. The statement, which does not state the value of funds stolen, says:
Sharktron, which issued a press release about the decentralized finance (defi) project in October, claims the projectâ€™s â€œmain task is to create a complete platform autonomy with a gradual transition to self-management by community members.â€
However, shortly after the press statement, users on Twitter began querying the Defi projectâ€™s claims of high returns in a very short space of time. Some began making the scam allegations after token holders reported problems accessing the Sharktron website.
Red Flags Ignored
According to one report, Twitter users repeatedly warned Sun about the fraudulent nature of the Sharktron project. However, the report says Sun â€œignored the red flags.â€ The Sharktron protocol is listed on another Sun creation, the Justswap decentralized exchange (DEXs).
In addition, the report states that despite the mounting concerns and complaints, the Justswap platform still gave its seal of approval to the Sharktron project by whitelisting it.
Meanwhile, some Twitter users reacted to the Tron Foundationâ€™s tweet by asking for a fair reimbursement process. A Twitter user named Brindan SC writes:
In October, the Tron Foundation announced it will be reimbursing TRX holders that cannot access their tokens on the Okex crypto exchange. It remains to be seen if the foundation is going to repeat the same compensation plan following the Sharktron exit scam.
In the meantime, other Twitter users believe that Sun and his Tron Foundation may be complicit in this scam just as he has been accused of with other scams.
What should be the formula when reimbursing recovered stolen funds? Tell us what you think in the comments section below.
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.