You Got Rugged on BSC? Here’s what to do NEXT!

There are lots of well-meaning developers out there who truly are trying to create a product that provides value on investor’s capital, and are content in taking dev fees along the way. That’s pretty much the way it works. But, there are also some truly vile individuals out there, who are completely comfortable taking your money from the contract they created, and running away with your funds. The truth is, it happens, and this article will provide some examples of rug pulls, and give you some suggestions for what to do after you get rugged to protect you from further financial damage.

I don’t mean to be blunt, nor suggest that anyone deserves to lose funds to a sleazy dev. But, when you invest in a smart-contract, or an unregistered website, you are taking a risk. I certainly hope that risk pays off, but many of these sites exist solely for the devs to take the money and run.

So, you’ve rugged…

This is a horrible feeling, and I’m sorry to say, I have experienced it. The dreams of wealth go POOF in a heartbeat and reality sets in.

Signs of a rug:

• The website goes down for more than a few hours (I say give it 48 hours. If it doesn’t come back after that, it’s probably gone).
• The developers stop participating in the social media forums (Discord, Telegram).
• The developers offer excuses as to why things are going wrong, and the excuses change. Sure, things happen. But, when the reasons change and it’s always someone else’s fault, watch out.
• WITHDRAWALS stop. This is a big one. Once a contract is large enough, the developers find some reason to stop withdrawals. “SMS SERVER PROBLEMS. PAYMENT PROCESSOR. WEBSITE HOSTING”. There’s always a reason, but this is a big red flag.

After the rug, it’s crucial to cut off access to your wallet. When you first deposit money into a contract, the first think you do is approve access to your wallet. It’s important to take the following steps as soon as you can, so you can cut off access.

Tasks to do after a rug:

1. Goto app.unrekt.net, and revoke the permissions for the coin associated with the platform for that platform. For example, if you were invested in “BotTrader.io” (as of yet fictitious), and you deposited USDC, go to app.unrekt.net, and search for USDC token. Then look for BotTrader.io in the list. If that’s there, you’ll have to search DeBank.com or BSCScan for your wallet address, and found the transaction of your deposit. This will reveal the contract address that you sent the funds to. Search for THAT address, and revoke the permissions for that coin.
2. It’s never a bad idea to revoke EVERYTHING for all sites every once in a while. You will always have the opportunity to re-authorize when you next visit a legit DeFi site when you connect your wallet.
3. You can, if you wish, file a complaint against the rug puller with the SEC and IC3 Internet Crime websites. It’s not extremely likely that they will do anything, but it’s always worth a try.
4. Take a break before investing in another platform. Sometimes when you lose money, you get desperate, and will be more willing to try something to “make your money back”. Don’t. Poker players call this being on tilt. And you don’t want to play poker on tilt. And you certainly don’t want to invest hundreds more dollars trying to “catch up”. Be patient.
5. Don’t feel so bad. You might feel like a victim, and you are, but that doesn’t mean you have to act like one. Pay attention to how you feel, though. If you are panicked, it’s possible you invested more than you should have.
6. Do your research before investing in future projects.

Tips for Future:

1. Only use smart-contracts. Avoid using website-based “send money to this address” sites. Smart contracts are not immune to rugs!
2. If they advertise a trading bot, wait until you see trading proof before you invest.
3. If it seems too good to be true, it probably is.
4. Avoid ponzi-miner “games”. If you must get involved in these (i.e. BakedBeans), make sure you get in early and start withdrawing early. I hate these things, and will never do another one again.
5. NEVER EVER “REAUTHORIZE” YOUR WALLET BY PROVIDING YOUR SEED KEY
6. If you post questions about a rug or a problem in a Telegram or Discord channel, odds are HIGH you will get a “helpful” agent ready to assist you via DM. Ignore these, as they are scammers. They will appear helpful until they ask you to visit a website and enter in your wallet keys. Just delete it and move on.
7. Next time, get your initial investment back before you start pouring a whole bunch of money in. And, each time you put more money in, get your initial investment back before putting more in. Think of it this way: If you’re desperate to get your money in, something in your mind is telling you that you’re beating a clock. That might be a rug clock. If the platform is really going to provide earnings for a long time, there’s plenty of time to let your modest investment grow. That way, if it does rug, at least you’ve gotten your deposit back and you’re playing with “house money”.

I hope you never get rugged again. Take your time choosing projects, start small. A good project will last a long time and there’s no rush. Good Hunting!

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