HatchDAO has added to its growing list of projects that have taken advantage of investors' interest in the Decentralized Finance Area (DeFi) to appropriate their money.
"Congratulations to HatchDAO for giving the community peace of mind. Their team tokens are now locked down and will be distributed using fully audited SmartLock technology," wrote TrustSwap, a service provider on September 19.
When HatchDAO made an exit-scam a few days later by withdrawing liquidity from the pools and removing all channels for communication, the charges were poured on TrustSwap. Community members claim that the startup guarantees created a false sense of security and were used as a means to draw attention to the fraudulent offer.
That's where the complexity of cryptographic software shows its bad side," writes Boxmining, a cryptologist. - Trustswap blocked the team's assets, but the fraudsters from HatchDAO withdrew liquidity".
TrustSwap for its part said that their service worked flawlessly. The company notes that there are at least four ways to make an exit-scam: sell the team tokens, withdraw the liquidity, issue additional tokens or change the contract code. TrustSwap guarantees apply only to the first case.
"Just like closing a door does not guarantee the safety of the house, blocking TrustToken tokens does not guarantee the impossibility to withdraw liquidity," added Jeff Kirdakis, CEO of TrustSwap.