Chips Squad $CHIPS Incident

Brief summary of the event:

Chips Squad had a successful pre-sale. Then it announced that it will be listed on Pancakeswap at 04.10.2021 at 16:00 UTC.

Immediately after listing, a large number of tokens were minted using a backdoor in the smart contract. These minted tokens were sold, draining the liquidity pool. Also known as rug-pull.

Project owner’s claim

The project owner claims to be innocent. He admits it was due to a flaw in the smart contract. But he claims he didn’t. He says it was made by a dev he worked with. He says he will go to the police and tell the incident and cooperate with the police. But he didn’t do it, so far.

Our Evaluation

The project owner stated that he has control over the smart contract during the KYC process. Therefore, an error in the smart contract is the responsibility of the project owner. The project owner did not share anything about the dev he mentioned. The project owner lives in Switzerland. Also, he is Turkish.

What did we do?

  • Therefore, as, we filed a criminal complaint against the project owner with the Swiss-Zurich police. We forwarded all the documents we obtained during the KYC process.
  • Also, one of the victims is a public prosecutor in Turkey. He contacted us. After confirming the identity, all the documents we have were shared with him. Since the project owner is Turkish, a lawsuit will be filed against him in Turkey.
  • We shared the photo of the project owner with in the group.
  • We shared the criminal complaint we made about the project owner with the group.
  • Some of the Chips Squad investors contacted us. Through their lawyers, they requested the documents to file a criminal complaint against the project owner. We shared the documents with these people.
  • One of the victims of the Chips Squad incident contacted us. Afterwards, all documents were shared with “OLDHAM, LI & NIE International Law Firm”, the legal representative of this victim. There will probably be another lawsuit filed against the scammers.

If you also want the documents to file a criminal complaint. Please contact us.

If you have questions about this subject, you can contact us.

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