Your daily dose of crypto news

Concerns Arise Over Unexplained Transfers on LENX Protocol

2 min read

Concerns Arise Over Unexplained Transfers on LENX Protocol

There is a lot of talk on social media about a potential rug pull happening with the liquidity protocol LENX. People are speculating about large transfers of tokens worth millions of dollars that have been made without explanation. AstroBoy, a pseudonymous user, and Etherscan data have reported that the founders of LENX Finance, John Kim and someone named Paul, transferred over $10 million worth of treasury assets to a Binance account without providing any clear justification. This has caused the LENX wallets to be drained. Users on the protocol’s Discord server have expressed their frustration with the lack of communication since these transactions were first spotted on March 26. They have also noticed consistent transfers to Binance and messages about suspicious withdrawals being deleted.

LENX Finance was launched in January 2024 with a promise to support native Bitcoin for yield generation or borrowing against it. LENX’s native token, LENX XD (XD), had an initial value of $0.26 in early January, but it is currently valued at $0.02. FRAX Finance, a lending protocol, backs LENX.

tried to reach out to both co-founders of LENX Finance and the FRAX Finance team, but they did not receive an immediate response. Flywheel DeFi, a media company, reportedly had a chat with Kim, but he declined to comment, saying he didn’t have much to say at the moment. Paul’s last activity on Discord was on March 26 when he announced that he was investigating the withdrawals.

According to reports on Discord, the LENX team managed to freeze the Binance account that received the funds, securing $3 million. There is an ongoing investigation into Kim’s activities, while Paul is cooperating with legal efforts. For those unfamiliar with the term, a rug pull is a type of scam where developers suddenly withdraw all funds from a project or liquidity pool, leaving investors with worthless tokens or assets. The FBI reported a significant increase in crypto-related investment fraud in the United States in 2023, with losses rising from $2.57 billion in 2022 to approximately $3.94 billion, marking a 53% increase.

Leave a Reply

Copyright © All rights reserved.