A defi project called DeFiLabs was able to rug pull for $1.6 million thanks to a backdoor written into the smart contract. After traders bought into the project, its creator was able to call the withdrawFunds function to make off with the project’s assets.DeFiLabs claimed on Twitter that the platform “encountered an unexpected issue” while “undergoing maintenance and updates”.DeFiLabs had been audited by blockchain security firm CertiK.

Total loss estimated at $1,600,000.