Bitcoin Bridge OrdiZK Suffers Apparent $1.4M Rug Pull, Token Crashes to Zero: CertiK
The OrdiZK website and social media accounts are also offline.
Mar 5, 2024 at 3:18 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/XPS55T6DQZCP7PWLKCNWQBXGNQ.jpg)
/arc-photo-coindesk/arc2-prod/public/LXF2COBSKBCNHNRE3WTK2BZ7GE.png)
- $1.4 million has been consolidated across three wallets controlled by OrdiZK developers.
- The OZK token has lost more than 99% of its value.
- OrdiZK had been charging a sales tax on all transactions throughout its lifecycle.
OrdiZK, a project that set out to become a bridge between the Bitcoin, Ethereum and Solana blockchains, appears to have pulled an exit scam, with developers apparently siphoning more than $1.4 million from separate wallets, according to blockchain security firm CertiK.
The OrdiZK website and social media accounts have been taken offline, and the protocol's native token (OZK) has lost more than 99% of its value.
CertiK said OrdiZK committed an exit scam by selling tokens and calling an "emergencyWithdraw" function to remove ether (ETH) from the project. The ether was consolidated across three wallets: The project's deployer wallet holds $1.03 million worth, the treasury wallet has an additional $262,000 worth and the marketing wallet holds ETH worth $173,000.
The bridge was initially designed to allow the transfer of BRC-20 tokens to ERC-20 and visa versa. The token rose to an all-time high of $0.0107 in December during a period of market frenzy focused on Bitcoin-based NFT project Ordinals.
CertiK added that throughout its life cycle, OrdiZK obtained ether by charging a sales tax.
:format(webp)/www.coindesk.com/resizer/fczAGHsWLFXiMV23oZZmkW19Ots=/arc-photo-coindesk/arc2-prod/public/D4HEG34XFVFVJHPXEEJAEFZ3SI.jpg)
Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.