DESCRIPTION OF EVENTS
"The organizers of LV Finance described the project as a "community-owned DeFi ecosystem" based on the Ethereum blockchain." "In the near future they promised to launch genesis-farming." "The organizers of the DeFi project LV Finance faked the results of audits in order to steal investors’ money, according to the analytical company SlowMist."
"[A]lmost all DeFi cryptocurrencies first appear on Uniswap . However, the DEX does not have a strict listing procedure. Anyone can issue a token and add it to Uniswap. In this regard, the scammers take advantage of the "profit hunt" of the traders and try to download them coins without real projects and development teams."
"After investors deposited their funds, they found they could not withdraw. The team has since disappeared, and the website was down at the time of writing."
"On September 20th, according to the intelligence of the slow fog area, the Ethereum mining project LV Finance project was suspected to have gone away. In less than an hour, 4 million people were transferred away. The project used fake audit websites and provided false audit information to trick investors Invest and run away when the amount in the fund pool is large enough after a period of time."
"On September 19, a Twitter user reported he was unable to withdraw his funds from LV Finance. He tried to contact the project through its Telegram channel, however, he was blocked by the administrators of the channel. According to SlowMist, the project organizers have disappeared shortly after raising funds from users. The official site of the LV Finance project is offline at the moment and the social network accounts of the project have been removed."
"Currently, the project website lv.finance is no longer accessible." "[S]ocial media accounts have been deleted."
This fraud appears to have been executed so quickly that no record of the site or even a logo are subsequently available.
HOW COULD THIS HAVE BEEN PREVENTED?
Having some level of oversight and approval on projects can give consumers a tool to avoid completely fraudulent projects.
DeFi Project LV Finance Turns Out to Be Exit Scam | News | ihodl.com (May 23)
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Il progetto DeFi LV Finance è sospettato di exit scam - CryptoRivista (Jun 4)
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LV | 0xa77f34bde382522cd3fb3096c480d15e525aab22 (Jun 4)
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