NFT protocol SudoRare rug pulls investors for $815,000 six hours after launch

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SudoRare, a decentralized NFT marketplace, shut down operations six hours after launching. According to the blockchain security company PeckShield, the founders drained the protocol’s funds before disappearing. 

Peckshield estimates that the founders rug-pulled investors for 519 ETH, a total of $850,000, and consequently sent them to three different wallets. SudoRare immediately deleted all its social media accounts and groups, such as Twitter, Medium, and the official website. 

Peckshield also identified one of the receiving wallets from a user of the crypto exchange Kraken. Apart from Ethereum, the token LOOKS and stablecoin USDC were drained and converted to ETH through Uniswap.

The crypto community felt something was off about SudoRare. Crypto enthusiasts warned other users on Twitter several times that the project could turn out to be a scam. There were two major reasons for it: the anonymous team behind the project and the improbable returns the founders promised investors. 

The platform’s name—SudoRare—comes from a combination of popular platforms LooksRare and SudoSwap. LooksRare is a standard NFT marketplace similar to OpenSea, with LOOKS being its native token. SudoSwap, on the other hand, is an NFT protocol that allows users to access liquidity pools to buy and sell NFTs. 

Although rug pulls are more common in the crypto space compared to NFT projects, we might be seeing a change in direction. NFT holders usually fall prey to scams like phishing links. This week, blockchain analytics company Elliptic reported that cybercriminals stole over $100 million worth of NFTs during the last year.  

Even amid the crypto winter, scammers are still active and are always on the lookout for new methods to steal digital assets. 

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Agne Cimermanaite

Agne is a journalist and writer with a background in literature, culture, and arts. She entered the Web3 space in 2021 and began writing about cryptocurrency and NFTs. Agne is passionate about technology and storytelling and is always on the lookout for exciting stories.

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