Cardano stablecoin project gambled away investors’ money before rug: Report

The brand-new task, called “Ardana,” would enable financiers to lock up crypto security and mint fiat-pegged stablecoins, consisting of a U.S. dollar-based token called dUSD. New evidence from Web3 risk-management platform Xerberus suggests there might be more to the Ardana story than just fundraising issues.According to Xerberus, Ardana executives most likely moved 80% of the projects funds to a personal wallet after first trying to obscure the deals by sending out some through centralized exchanges. As in the advent of the bear market prices collapsed Ardana lost at least 4 million USD just on their DEX trades.

New proof from Web3 risk-management platform Xerberus suggests there may be more to the Ardana story than just fundraising issues.According to Xerberus, Ardana executives most likely moved 80% of the tasks funds to a personal wallet after first attempting to obscure the transactions by sending some through centralized exchanges. Blockchain information shows that decentralized exchange (DEX) SushiSwap was utilized to make this swap.From there, the funds were sent to what the Xerberus founders declare is an old personal wallet (” Old Address”) of Ardana creator Motovu. They found that “in between $200,000 and $400,000” was in this wallet before the Ardana ICO, however the bulk of the funds it later on held were from Ardana. It is this wallet that they claim was utilized to purchase a range of cryptocurrencies, eventually triggering Ardanas funds to be lost in bad investments.CeFi exchanges sign up with the trailIn addition to the amount moved on-chain to the Target Wallet, another $4 million was sent out through centralized exchanges initially, then moved to the Target Wallet, according to the Xerberus co-founders. According to them, an overall of $4 million was sent to the Target Wallet through these techniques, bringing the total quantity of funds sent into it to $7.2 million.Some funds stay, while some were spent on developmentResearch carried out by the Xerberus team shows that approximately $1.82 million worth of Ardanas funds were invested on development expenses associated with the project, including group members salaries.

They discovered that “between $200,000 and $400,000” was in this wallet before the Ardana ICO, but the bulk of the funds it later held were from Ardana. It is this wallet that they declare was used to purchase a variety of cryptocurrencies, eventually triggering Ardanas funds to be lost in bad investments.CeFi exchanges sign up with the trailIn addition to the amount moved on-chain to the Target Wallet, another $4 million was sent out through centralized exchanges first, then moved to the Target Wallet, according to the Xerberus co-founders. According to them, an overall of $4 million was sent out to the Target Wallet through these methods, bringing the total quantity of funds sent out into it to $7.2 million.Some funds remain, while some were invested on developmentResearch conducted by the Xerberus team reveals that around $1.82 million worth of Ardanas funds were invested on development costs associated with the job, including team members salaries.

Other Questions People Ask

What happened to the funds in the Cardano stablecoin project before the rug pull: Report ...?

The Cardano stablecoin project, Ardana, reportedly gambled away investors' money by moving 80% of its funds to a personal wallet. Evidence from Xerberus indicates that this was done after attempting to obscure transactions through centralized exchanges. Ultimately, Ardana lost at least $4 million due to poor investments made with these funds, raising serious concerns about the project's management.

How did Ardana executives manage the funds before the rug pull: Report ...?

According to the report from Xerberus, Ardana executives initially transferred a significant portion of the project's funds to a personal wallet, which was later used for risky investments. They moved around $4 million through centralized exchanges before consolidating it into what is referred to as the Target Wallet. This mismanagement of funds has led to substantial losses for investors, highlighting a lack of transparency in the project's operations.

What role did decentralized exchanges play in the Cardano stablecoin project's downfall: Report ...?

Decentralized exchanges, particularly SushiSwap, were utilized by Ardana to facilitate the transfer of funds into a personal wallet. This method was part of a strategy to obscure the movement of funds before they were ultimately lost in bad investments. The use of DEXs in this context raises questions about the accountability and ethical practices of the Ardana project.

What were the development expenses associated with the Cardano stablecoin project: Report ...?

Research from Xerberus indicates that approximately $1.82 million of Ardana's funds were allocated to development expenses, including salaries for team members. Despite these expenditures, the majority of the funds were mismanaged, leading to significant losses. This situation underscores the importance of financial oversight in cryptocurrency projects to protect investor interests.

What evidence suggests mismanagement in the Cardano stablecoin project: Report ...?

The evidence presented by Xerberus highlights that Ardana executives likely engaged in deceptive practices by moving funds to obscure wallets and making poor investment choices. The report details how around $7.2 million was funneled into a personal wallet, with a substantial portion lost in failed trades. This mismanagement raises serious concerns about the integrity and future of the Ardana project.