Harvest Keeper, a decentralized finance (DeFi) application, has reportedly executed a rug pull, making off with approximately $1 million in user funds. The incident serves as a stark reminder of the potential risks involved in using DeFi applications. Users are advised to exercise caution while selecting and investing in DeFi protocols, particularly those that lack established track records or are newly launched. The consequences of rug pulls can be severe for investors, particularly those who have put significant sums of money into such protocols. The Harvest Keeper incident underscores the importance of conducting thorough research and due diligence before investing in DeFi applications.
With the rise in popularity of the cryptocurrency market comes an increase in the number of scams that target unsuspecting investors. Harvest Keeper, an AI-based dApp company, is the latest to receive criticism for its fraudulent activities. The firm has been accused of launching Ponzi schemes that lure investors and then drain their funds.
But while Ponzi schemes are the conventional techniques used by scammers, rug pulls have become more prevalent in Web3. Rug pulls involve the generation of malicious smart contract codes by developers to take crypto investors by surprise. This ultimately allows the culprits to escape with millions of dollars that they have stolen from their victims.
Recently, Harvest Keeper stole $1 million from its users’ funds. CertiK, a digital asset security firm had to confirm in a tweet to urge users to avoid the company’s URLs. The security division of De.Fi also advised users to quickly cancel all smart contract approvals to avoid further losses because the functionality of the fraudulent system remains uncertain.
The AI-based dApp made more than one transaction during the theft process. The first transaction was transferring $700,000 worth of USDT to an unknown address using a getAmount function. It later moved another $219,000 worth of crypto assets, including Ethereum, Polygon, and BSC, via what’s known as ice phishing transactions.
This type of transaction is considered a Web3 attack, whereby perpetrators deceive their victims by signing and granting access. It is rapidly becoming the most common strategy for scammers; it guarantees more profits.
Users of Harvest Keeper are requesting for a return of their lost funds, while others are being cautious by refusing to click any link that promises assistance from the company.
Harvest Keeper is an AI-driven program that classifies itself as a firm with unique artificial intelligence. The firm informed its customers of the 4.81% daily rewards it offered. The platform claimed its users were open to an efficient automated trading system. However, given the present condition of Harvest Keeper, users need to be more careful on different social media platforms.
Most rug pull developers use such platforms to promote their coins and draw the attention of several retail investors. Once enough people purchase the scam token, the culprits cash out all depositors’ funds on an exchange or move them to their wallets.
Investors in the cryptocurrency market should be extra cautious with their investments, particularly when it comes to less-known firms or promises of unrealistic returns. As always, the best rule of thumb is to perform due diligence and have an understanding of the investments you make.