NFT Project SudoRare Disappears With Roughly 520 Ethereum in User Funds

SudoRare, an NFTplatform that forked from SudoSwap and LooksRare, is just the latest crypto project to run off with users' funds. The project also deleted all of its social media accounts Tuesday morning. 

Many in the Crypto Twitter community were skeptical, with 2shabby tweeting on Monday that SudoRare could be a scam, “Don’t participate unless you want to take the risk of losing your money. This team is [anonymous], won’t dox [disclose their identities], and the possibility of this being a scam is high.” 

Another Twitter user 0xStanec had a high degree of suspicion, saying, “This Is like a 1,001% scam project that noobs will fall for it.”

SudoRare was an automated market maker platform and NFT marketplace, advertising staking opportunities for assets like Wrapped Ethereum (wETH), LOOKS, and XMON. LOOKS is the native token behind LooksRare, itself a fork of the leading NFT marketplace OpenSea.

Six hours after going live, almost 1 million LOOKS tokens were swapped into 154.5 Ethereum and another 230.6 LOOKS tokens into USD Coin (USDC), confirmed on Etherscan.

All 519 ETH was then moved off the platform, valued at $815,000 at the time of writing.

Funds were sent to three different addresses to drain both the funds, with any trace of the project removed, according to PeckShieldAlert on Twitter.

NFT platforms on high alert

Despite the natural anonymity of the industry, there are ways for both platforms and investors to protect themselves. 

Solana’s NFT marketplace Magic Eden rolled out a policy that required minters to dox themselves to the platform as part of an improvement plan after two high-profile rug pulls plagued the marketplace.

In light of the latest Sudorare event, SeaCows NFT, another decentralized NFT AMM platform, tweeted: “This sucks. Do your own research and hold teams to high security and transparency standards.”