Crypto Platform Developers Vanish with Investors’ Funds: A New Case of Crypto Fraud

• Another cryptocurrency platform, LENX Finance, is under suspicion of a rug pull scam, with investors’ funds reportedly disappearing.
• The platform, which had raised $10.22 million in funding on January 7 this year, allegedly transferred all treasury funds on March 27 and has not updated its official Twitter account since then.
• LENX Finance, initially known as RenaissanceDAO, a fragmented NFT market inspired by OlympusDAO, had completed a seed round investment of $250,000 to Frax Finance on February 28, 2022.

LENX Finance, a cryptocurrency platform, is suspected of a rug pull scam, with investors’ funds reportedly missing. The platform had previously raised $10.22 million and completed a seed round investment to Frax Finance.

LENX Finance Under Rug Pull Scam Suspicion

LENX Finance, a cryptocurrency platform that had successfully raised $10.22 million in funding earlier this year, is now under suspicion of a rug pull scam. Investors have reported that all treasury funds were transferred on March 27, and the platform’s official Twitter account has not been updated since then. This has raised concerns among investors and the broader crypto community.

Previous Investment and Market Position

Known initially as RenaissanceDAO, a fragmented NFT market inspired by OlympusDAO, LENX Finance had completed a seed round investment of $250,000 to Frax Finance on February 28, 2022. This move had positioned the platform as a significant player in the crypto market, making the current allegations even more shocking.

Other Recent Rug Pull Scams

Approximately two weeks ago, the crypto space faced another rug pull allegation. This time, blockchain platform ZKasino was at the center of accusations, with many investors claiming their funds were stolen. Despite the allegations, ZKasino continued to publish updates before disappearing from public view with the investors’ money.

Arrest and Seizure in Connection with ZKasino Scam

In a recent development, a suspect has been arrested in the Netherlands, and over $12 million has been seized in the process. The Dutch Financial Information and Investigation Service (FIOD) announced on Wednesday that a 26-year-old man was arrested earlier this week in connection with the ZKasino rug pull. According to the press release, Dutch authorities began investigating the $33 million crypto platform’s fraud on April 25. The criminal investigation began with online reports from the crypto community and information from FIOD’s intelligence departments.

Conclusion

The allegations against LENX Finance and the recent arrest in connection with the ZKasino scam highlight the risks inherent in the crypto market. Investors are advised to exercise caution and conduct thorough research before investing in any platform. As the crypto space continues to evolve, the need for increased regulation and investor protection becomes even more apparent.