Emerald Mine Exit Scam Statement
As of September 9th 2020, the DeFi project called Emerald Mine (EMD) based on EOS may have committed an exit scam, appropriating over 787,000 USDT, 490,000 EOS and other coins – worth nearly $2.5 million of user funds in total. Part of those funds has been stopped on our exchange thanks to our risk management system. From the supposedly locked smart contact "emeraldmine1" the funds were sent to an account "sji111111111". After that, the funds had been sent to various exchange platforms. The sum of 135020 EOS (~ $379049) was marked as suspicious by the ChangeNOW risk management system, retained, and placed in cold storage waiting for official requests from local law enforcement authorities in order to return the funds to their owners.
We have tackled 135020 EOS (~ $379049) Emerald Mine (EMD) exit scammers tried to exchange via ChangeNOW.
We're now expecting police requests to return the funds to their owners. If you are a victim of the EMD exit scam, reach out to your local law enforcement agency. pic.twitter.com/CP1pH5woBK — ChangeNOW (@ChangeNOW_io) September 9, 2020
As we stated in our response to CoinDesk: “Anyone who has suffered from the exit scam can turn to their local police, and if they contact us, our compliance team will check the legitimacy of the request and then a return procedure will be executed.” Repeating the warning of the auditioning firm SlowMist, which first reported the potential scam, we warn our users from sending additional funds to smart contracts related to this project and recommend to follow up on further reports. As a project, ChangeNOW always strives to make the crypto space safer - one case at a time. Check out our other cases of retaining stolen funds on our Business Ethics page.