Sharktron Defi Project Devs Exit Scam: Tron Foundation Says Part of Missing Funds Now Frozen

Developers of the Sharktron defi project have exit scammed with reports suggesting that TRX tokens worth up to $10 million are missing. The Tron Foundation has confirmed the theft, but is quick to inform Sharktron token holders that a portion of the missing funds has been frozen. The exit scam comes a few weeks after the Sharktron devs issued a press release inviting investors to buy the token.

Binance Freezes Part of Stolen Funds

However, Justin Sun’s Tron Foundation, seemingly eager to get past this event, has issued a response on Twitter. The statement, which does not state the value of funds stolen, says:

Regarding the shark incident, we have contacted Binance and worked together on chasing down the funds and people behind this. A portion of the funds has been frozen on Binance. If you were a victim in this case, please file a police report and work with law enforcement to seek recovery. We will be also working with all exchanges to track the rest of the funds and protect the interest of the Tron communities.

Sharktron, which issued a press release about the decentralized finance (defi) project in October, claims the project’s “main task is to create a complete platform autonomy with a gradual transition to self-management by community members.”

However, shortly after the press statement, users on Twitter began querying the Defi project’s claims of high returns in a very short space of time. Some began making the scam allegations after token holders reported problems accessing the Sharktron website.

Red Flags Ignored

According to one report, Twitter users repeatedly warned Sun about the fraudulent nature of the Sharktron project. However, the report says Sun “ignored the red flags.” The Sharktron protocol is listed on another Sun creation, the Justswap decentralized exchange (DEXs).

In addition, the report states that despite the mounting concerns and complaints, the Justswap platform still gave its seal of approval to the Sharktron project by whitelisting it.

Meanwhile, some Twitter users reacted to the Tron Foundation’s tweet by asking for a fair reimbursement process. A Twitter user named Brindan SC writes:

I lose 357500 TRX …Please allocate frozen funds to all investors as a percentage of their investment..

In October, the Tron Foundation announced it will be reimbursing TRX holders that cannot access their tokens on the Okex crypto exchange. It remains to be seen if the foundation is going to repeat the same compensation plan following the Sharktron exit scam.

In the meantime, other Twitter users believe that Sun and his Tron Foundation may be complicit in this scam just as he has been accused of with other scams.

What should be the formula when reimbursing recovered stolen funds? Tell us what you think in the comments section below.

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