CertiK is launching a compensation plan to cover the $2 million lost during the MAGE token sale of Merlin, the decentralized exchange on ZkSync.
CertiK reiterated that it was investigating an exit scam and had enlisted the rest of the Merlin team to initiate a compensation plan. The fraudulent developers are based in Europe, and CertiK will work with law enforcement to track them down. if direct negotiations are unsuccessful.”
CertiK urges scammers to refund 80% of stolen funds and keep 20% as white hat bounty.
Merlin lost about $850,000 worth of USD Coin and illiquid tokens on April 26 during a three-day MAGE token sale without any hard cap, blockchain data pointed out. that The person who takes the money has control over liquidity and can easily pump it out.
CertiK, the audit code of Merlin meetwith preliminary findings pointing to “Potential private key management issues”
The crypto community on Twitter questioned CertiK’s audit, suggesting there might be a rug pull.
Verichains founder Thanh Nguyen described the “backdoor” hidden in Merlin’s code as a “A clear security risk. because there are no use cases that require approval.”
“While audits can identify potential risks and vulnerabilities, But it cannot prevent malicious activity on the part of deceptive developers, such as rug pulling,” CertiK said in a statement. “We encourage users to look for projects with a ‘KYC Badge’ for an added layer of security. This indicates that the project has passed the voluntary KYC verification process.”
The company explains that doing so It can help mitigate and mitigate the risk of internal threats such as rug pulls.
The post CertiK Prepares $2 Million Compensation Plan for Merlin DEX on ZkSync Appeared First on Bitcoin Addict.