PeckShield said wallets associated with the Teddy Doge (TEDDY) project sold more than $4.5 million in tokens on July 23-24. The price of an asset based on the BNB Chain has dropped to zero.

Addresses linked to the TEDDY exchange contract received a total of ~10,000 BNB ($2.5 million) and ~2 million BUSD. The funds were gradually transferred to the Binance exchange.

“The installer activated the contract and sent a large amount of TEDDY to 0xdbe8ef79a1a7b57fbb73048192edf6427e8a5552 and subsequently lowered the price of the token,” the experts said.

They called the event the “soft version” of carpet pulling. This is a scam where the team abruptly leaves the project, sells all the tokens and withdraws liquidity.

Sooho CEO Jisoo Park agrees with PeckShield in a comment to CoinDesk:

“Instead of cheating with the code, the assets allocated to the manager’s account appear to have been distributed and sold in bulk. It’s not a hack, it’s a carpet pull. But it’s unclear if they’ve dropped the project, so you could call it a softrug.”

Project managers stated that there was an error of a nature they understood. Also, the developers “temporarily” stopped the cross-chain bridge from working.

“We are actively discussing the next step to replace TEDDY with new DRAC tokens, we apologize,” they wrote. chirp.

According to CoinGecko, the token has lost 99.9% in price over the past 24 hours. At its maximum in February 2022, the asset was worth $0.003. The main trading platforms for TEDDY are XT.COM and BKEX with a daily trading volume of approximately $8 million.

Recall that in the second quarter of 2022, the total loss of crypto projects from hacking and fraud exceeded $ 670 million, according to experts from Immunefi.

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