Technology

Blockchain security firm accuses token of crypto rug pull resulting in $1.3 million in losses

While Thursday saw more volatility than usual in the cryptocurrency sector, the losses experienced by most Bitcoin and Ethereum investors were nothing compared to those seen by people who owned the Day of Defeat token. The altcoin saw its value drop 94.68% on Thursday, according to CertiK, a blockchain security firm and auditor. That resulted in an estimated $1.35 million in losses, though official numbers haven’t been released yet. Official admins from Day of Defeat have denied the plunge was a rug pull, saying their wallets were attacked by a hacker. CertiK, however, alleges “the two wallet addresses both contain large amounts of DOD tokens they received or swapped from contract-related addresses.” Fortune was not able to reach Day of Defeat for comment. Rug pulls are a crypto scam in which a developer promotes a new project—usually a new token—to investors, and then disappears with millions of dollars. It accounted for $2.8 billion in lost money for victims in 2021, according to blockchain analysis company Chainalysis. That’s 37% of all cryptocurrency scam revenue. And they can impact anyone. Last year, even billionaire investor Mark Cuban said he’d been fooled.

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