$10 000 000 USD

NOVEMBER 2020

GLOBAL

SHARKTRON

DESCRIPTION OF EVENTS

"SharkTron [was] a DeFi platform featuring liquidity mining on Tron." "Sharktron, which issued a press release about the decentralized finance (defi) project in October, claims the project’s “main task is to create a complete platform autonomy with a gradual transition to self-management by community members.”"

 

"It was launched by an anonymous developer known under the nickname Daniel Wood. According to the official press release, published by Bitcoin.com, the project is focused on creating a completely autonomous platform with the gradual transition to self-governance by the community members. The developer invited TRX users to stake their coins in the exchange SHARK (SRX), the native tokens of the platform."

 

"Hello, sharks! The start of our new service went great! SharkInvest attracted over $ 1,000,000 investments in the first day. We thank you for your warm support and participation in the platform development. This is just the beginning! Join us and earn more SRX, TTH and TRX!"

 

"According to one report, Twitter users repeatedly warned Sun about the fraudulent nature of the Sharktron project. However, the report says Sun “ignored the red flags.” The Sharktron protocol is listed on another Sun creation, the Justswap decentralized exchange (DEXs)." "Twitter is bubbling with comments that customers warned Tron's creator of the project's fraudulent nature and even asked him to block the anonymous developer's wallet. However, Sun ignored the red flags."

 

"SharkTron had an incident according to a statement Tron Foundation issued on Nov. 9." "[T]he DeFi project SharkTron appeared to have conducted an exit scam with $10 million in user funds, closing its website and leaving users in the dark." "Some sources report a loss of $260 million of users’ assets from several platforms associated with SharkTron, including Shark Invest and Shark Dice. Some users attach screenshots of wallets, which suffered losses."

 

"[Tron Foudation] advised users to file reports to the police in the meantime." "A portion of the funds has been frozen on Binance. If you were a victim in this case, please file a police report and work with law enforcement to seek recovery." "Tron Foundation promised to track down and freeze the remainder of the funds."

An anonymous developer created SharkTron, a liquidity mining protocol on the Tron network.

 

The developer ultimately made off with $10m of investors funds which were invested on the platform. While some of the funds were frozen, it does not appear that investors have been returned a significant portion.

HOW COULD THIS HAVE BEEN PREVENTED?

This is part of why having reasonable and innovation-supporting regulations is so important. It can avoid situations where anonymous developers are launching projects to steal users funds, and limit platforms to known and reputable individuals.

 

Check Our Framework For Safe Secure Exchange Platforms

Sources And Further Reading

 For questions or enquiries, email info@quadrigainitiative.com.

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