DARK DEFI Hack

Investors of the DARK DEFI project essentially got rekt by two mechanisms the contract deployer introduced which resulted in a centralization issue where one independent wallet was holding more than 5% of the total $DARK token supply.

A look at  DARK DEFI's source code would have pointed investors directly to the fact that the contract owner could disable the transfer function, which restricted users in selling their tokens. This fact also became known to the community later on when alerts surfaced that users were not able to sell their token. In short, the contract deployer added initial liquidity at:

https://etherscan.io/tx/0xc4bc0b94…4c29ea

The LP tokens were locked and transferred to the vesting smart contract:

https://etherscan.io/tx/0x69a6c3d9…3f5693

The contract deployer als used a hidden minting functionality under the approveAndCall() function to generate new tokens onto this external wallet at:

https://etherscan.io/tx/0x32243fbb…f6fe47

https://etherscan.io/tx/0x7d6ccdba…625b8e

Through this excessive minting, this external wallet became the top holder of the $DARK token and proceeded to dump the token in several transactions on the Uniswap exchange:

https://etherscan.io/tx/0x3e7fb02a…03d9a6

https://etherscan.io/tx/0x63987426…96139f

https://etherscan.io/tx/0xddb8bc28…fa3d9c

DARK DEFI token deployer (scammer):

https://etherscan.io/address/0xfa5a97ce…a67b4a

Scammer Address B:

https://etherscan.io/address/0x93ec7f43…bad66f

More example Transaction:

https://etherscan.io/tx/0xef5c9b6d…51e76f

https://etherscan.io/tx/0xc63eeb6f…bbfaa2