The Alleged Exit Scam of OrdiZK: Exploring the Differences Between Web 1.0, 2.0, and 3.0

The team behind the cross-chain bridging protocol OrdiZK (OZK) has reportedly performed an exit scam, pocketing $1.4 million in cryptocurrency from investors. This incident, as reported by blockchain security platform CertiK, highlights the differences between web 1.0, 2.0, and 3.0 in terms of decentralization and marketing strategies.

According to Certik, on March 4, the protocol’s deployer account allegedly sold 489 million OZK tokens on a decentralized exchange, resulting in a 98% drop in token value. The following day, an additional $214,000 worth of OZK was sold, causing a 99% slippage.

Blockchain data shows that on March 4, the OZK deployer called the “execute” function on Uniswap’s Universal Router contract, exchanging 489 million OZK for 35.65 Ether (ETH). The next day, the deployer withdrew 121 million OZK, resulting in another 0.93 ETH being transferred from Uniswap’s OZK/ETH liquidity pool into their account.

Furthermore, the deployer withdrew approximately $197,000 worth of ETH from the OZKStake contract by calling the “emergencyWithdraw” function. Certik also discovered that the project held $263,000 in a “marketing wallet” and $174,000 in a “treasury wallet,” indicating that they had over $1.4 million in total across the three wallets before the alleged exit scam.

The deletion of the project’s X account, its Telegram group, and related documents has occurred.

In the first two months of 2024, crypto criminals have already stolen hundreds of millions of dollars from victims. According to blockchain security company Immunefi, over $200 million has been lost in these incidents so far this year. On February 26, RiskOnBlast, a gambling protocol, became the first rug pull on the new Blast network, resulting in the loss of $1 million of investors’ funds.

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