Binance is creating a smart contract to issue a refund to users impacted by the $3M redemption

Crypto exchange Binance has created an automated smart contract to reimburse users for compensation following the events of the Xirtam carpet train.

According to an announcement on Sept. 6, users affected by the Xirtam carpet pull can receive their funds by connecting their wallets to Etherscan, passing a verification check, and accessing the claim function from the contract address. Users must submit their claims by August 2nd to be eligible for a refund.

“We have received multiple reports of XIRTAM incidents and are fully aware of the seriousness of the issue,” the exchange previously wrote. She added:

“An investigation was launched and immediate action was taken. The suspected fraudulent funds were frozen on the Binance account. We appreciate your patience and understanding while we work to resolve this issue.”

Arbitrum-based Xirtam raised around 1,909 Ether (ETH), or $3.2 million, in user deposits through a series of funding rounds in April. These were two direct initial coin issuances and two community sales through the Fjord Foundry and SushiSwap liquidity bootstrapping pools.

In one case, a planned Initial Airdrop Offering (IAO) for Xirtam tokens was canceled by Arbitrum-based decentralized exchange (DEX) AlienFi after it was discovered that an undisclosed sale of Xirtam seeds was well below the negotiated price. The ILO was canceled just five minutes before it was scheduled to begin.

Immediately after raising capital, the project owners orchestrated a rug pull that drained all assets from the Xirtam smart contract. However, all funds were deposited directly on Binance, prompting the exchange to freeze the stolen assets on May 4th. No mixer or bridging service was used to launder the funds prior to depositing them on Binance.

Update on XIRTAM related matters

Thank you for your attention to the progress of returning XIRTAM assets. Currently, the relevant assets have been transferred to the smart contract. You can review the Entitlement Agreement information through the XIRTAM Reimbursement Guide and edit and review the relevant information as directed.

If you have any questions, you can fill out an information call at the end of this guide.

Instructions: https://t.co/8jJTBFzr0f…

— Binance Binance Chinese｜Binance Launches Copy Feature (@binancezh) September 6, 2023

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