The OrdiZK cross-chain bridging protocol has allegedly executed an exit scam, vanishing with approximately $1.4 million worth of investors’ cryptocurrency, as reported by blockchain security platform CertiK. According to CertiK’s findings, on March 4, the protocol’s deployer account initiated massive token dumping, selling 489 million OZK tokens on a decentralized exchange, resulting in a $132,000 profit. This sudden sale caused the token’s value to plummet by a staggering 98%. Following this, on March 5, another $214,000 worth of OZK tokens were sold, further exacerbating the situation with a 99% price drop.
Further analysis of blockchain data confirms suspicious activity on March 4, where the OZK deployer utilized Uniswap’s Universal Router contract to swap approximately 489 million OZK tokens for 35.65 Ether (ETH). Additionally, on March 5, the deployer withdrew an additional 121 million OZK tokens through the execute function, transferring 0.93 ETH from Uniswap’s OZK/ETH liquidity pool into its account. Notably, the project also withdrew approximately $197,000 worth of ETH from the OZKStake contract by invoking the “emergencyWithdraw” function.
The severity of the exit scam is underscored by the complete deletion of the project’s X account, along with its Telegram group and associated documents. This incident adds to a concerning trend in the cryptocurrency space, with crypto scammers and hackers already responsible for over $200 million in losses in 2024, according to blockchain security firm Immunefi. Notably, just weeks prior, the gambling protocol RiskOnBlast executed a rug pull on the Blast network, absconding with $1 million of investors’ funds, further highlighting the urgent need for heightened security measures within the crypto community.
