This BRC-20 project stole 1.4 million dollars through exit fraud

BRC-20 token project OrdiZK was involved in an exit scam that stole nearly $1.40 million of investor funds.

This scam happened between March 4 and March 5 when the project developer engaged in suspicious activities. These include token dumping and simulating Ethereum (ETH) with a ‘sudden exit' maneuver.

How the OrdiZK scam was opened

The scammer is downloading a staggering 489 million OZK tokens for $132,000. This sale resulted in a 98% price slide.

The next day, an additional sell of approximately $214,000 on another OZK contract resulted in a slide of approximately 99%. This second sale reduced the token's market value and investor confidence.

“We saw an exit scam on OrdiZK. Website and social media accounts were deleted. The deployer took about $1 million in ETH from dumping tokens, withdrawing ETH from project contracts, and sales taxes,” blockchain security company Sertic said.

Read more: What are BRC-20 Tokens? By 2024, everything should be known.

Currently, the employer's stolen profits are 277 ETH, worth approximately $1,033,882.98, and an additional 70 ETH, worth $262,796.28. These funds are in the project's treasury purse, and an additional $173,899.48 is in the project's marketing purse.

Adding insult to injury, Ordzike has taken down his official website and deleted all traces of his online presence, deleting his social media accounts. This has left investors and stakeholders panicked and disillusioned.

Read more: Top 5 BRC-20 systems to trade in 2024

This incident cast a long shadow over the integrity of the BRC-20 token projects. It also highlights the need for investors to exercise due diligence in BRC-20 and other crypto tokens. Investigative efforts continue as the crypto community and regulatory bodies come together to address the effects of this type of fraud.