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The developers of the Sharktron defi project have been scammed with reports suggesting that TRX tokens of up to $ 10 million are missing. The Tron Foundation has confirmed the theft, but is quick to inform Sharktron token holders that some of the missing funds have been frozen. The exit scam comes just weeks after the Sharktron developers issued a press release urging investors to buy the token.
Binance blocks some of the stolen funds
However, Justin Sun’s Tron Foundation, seemingly eager to get past this event, has released a reply on Twitter. The statement, which does not indicate the value of the stolen funds, says:
Regarding the shark incident, we reached out to Binance and worked together to track down the funds and the people behind it. Some of the funds were frozen on Binance. If you have been a victim in this case, file a police report and work with law enforcement to ask for recovery. We will also work with all exchanges to monitor the rest of the funds and protect the interests of Tron communities.
Sharktron, who issued a press release on the decentralized finance (defi) project in October, says that “the main task of the project is to create complete platform autonomy with a smooth transition to self-management by community members.”
However, shortly after the press release, users on Twitter began questioning the Defi project’s claims of high yields in a very short amount of time. Some started making scam allegations after token holders reported problems logging into Sharktron’s website.
Red flags ignored
According to a report, Twitter users have repeatedly warned Sun of the fraudulent nature of the Sharktron project. However, the report said Sun “ignored the red flags”. The Sharktron protocol is listed on another Sun creation, the decentralized exchange Justswap (DEX).
Additionally, the report states that despite growing 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 Foundation tweet demanding a fair refund procedure. A Twitter user named Brindan SC writes:
I lose 357500 TRX … Allocates frozen funds to all investors as a percentage of their investment ..
In October, the Tron Foundation announced that it will reimburse TRX holders who cannot access their tokens on the Okex cryptocurrency exchange. Whether the foundation will repeat the same compensation plan following the Sharktron exit scam remains to be seen.
Meanwhile, other Twitter users believe Sun and his Tron Foundation may be complicit in this scam just as he has been accused of other scams.
What should be the repayment formula for recovered stolen funds? Tell us what you think in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
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