The DeFi issue: Korean behind YFI fork “Asuka” leads $60,000 exit scam

The developer behind Asuka, a short-lived fork of DeFi project Yearn Finance (YFI), conducted an exit scam this morning, with sources noting the loot was between the range of $30,000-$60,000.

Asuka tokens reached over $1,600 in value over the weekend. But — in a reminiscence of Bitconnect — they now trade at under $10. 

A scam using DeFi YFI as bait

Led by Jang Jong-chan, a Korean cryptocurrency developer said to be in his 20s, Asuka jumped on the DeFi frenzy this weekend and boasted over 10 billion won ($8.3 million) in liquidity at one point, said local publication Joind

Asuka tokens were priced at $20 and went all the way to $1,600 based on demand and low circulating supply. The project even touted close to YFI’s 500% in annual percentage yield — if holders used a variety of platforms to over-collateralize and increase their holdings, that is.

But the pack of cards took just three days to fall. Jang accessed the pool today and emptied between $30,000-$60,000 in funds (this amount is yet unclear), stating he was “ashamed” about his antics:

Not an $8 million scam

Jang only made away with a fraction of Asuka’s $8.3 million liquidity. However, as MakerDAO’s Doo Wan Nam noted on Twitter, this was not the case:

According to Joind, Jang burned the “owner key” for the liquidity pool, making him unable to access any of the investors’ locked funds. 

Asuka was created last week after Jang said he would make the first Korean YFI fork; reportedly after seeing the rise of YFII, a “Chinese” YFI fork which has the likes of Primitive Ventures partner Dovey Wan as one of the multi-sig holders

Meanwhile, the report said Andre Cronje, Yearn.Finance founder and developer, referred to Akusa in an earlier tweet this week (although Cronje did not mention any project). This could have helped in legitimizing the scam and, in turn, helped to attract millions in liquidity, the report added.

(This story is developing and will be updated with details).

Posted In: , DeFi, Scams

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