Binance Introduces Smart Contract for Xirtam Rug Pull Victims

Following the Xirtam rug pull, crypto exchange Binance has devised an automated smart contract to reimburse users.q

According to an announcement made on September 6, Xirtam rug pull victims can obtain their funds by connecting their wallets to Etherscan, passing a verification check, and calling the claim function via the contract address.

To be eligible for recovery, users must have submitted their applications by August 2, 2018. The previous exchange stated, “We have received multiple reports of XIRTAM incidents and are fully aware of the severity of the issue. They added:

“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, based in Arbitrum, raised approximately 1,909 ETH, or $3.2 million, in April through a series of funding rounds. These consisted of two direct ICOs and two community sales through the Fjord Foundry liquidity bootstrapping pools and the SushiSwap liquidity pools.

AlienFi, an Arbitrum-based decentralized exchange (DEX), canceled a scheduled Xirtam token initial airdrop offering (IAO) after uncovering an undisclosed Xirtam seed sale well below the negotiated price.

The IAO was canceled five minutes before its designated start time. Immediately after raising capital, project proprietors orchestrated a rug pull that drained all assets from the Xirtam smart contract.

All of the funds, however, were deposited directly onto Binance, prompting the exchange to suspend the stolen assets on May 4.

Before the funds were deposited on Binance, neither a mixer nor a bridging service were used to launder them.