There was a platform called Ordinals Finance where people could trade Bitcoin inscriptions. They used Ethereum to do this. But now, the platform has deleted its Twitter and Telegram accounts, and it seems like they have taken away $1 million from users. This information was shared by a company called CertiK, which helps keep blockchain technology secure.
CertiK, a company that helps keep blockchain technology secure, sent a message on Twitter on April 24th. They said that the people behind Ordinals Finance, who we don’t know the identity of, took out about $1 million worth of the platform’s tokens called OFI. They did this by using two functions on the system, which caused people who had invested in OFI to lose a lot of money. The price of OFI went down by more than 95%.
After investigating what happened, it was found out that the people behind Ordinals Finance used two different tools called “safuToken” and “ownerRewithdraw” to take out 269 million OFI tokens. This is what caused the loss of $1 million and made the OFI tokens much less valuable.
When the people behind Ordinals Finance used the “safuToken” tool to take out the OFI tokens, they took out most of the tokens – 256 million OFI – in many different transactions. They sent these tokens to a different Ethereum address.
The OFI tokens that were taken out from the platform were sent to a place called Tornado Cash. This is a tool that makes it hard for people to follow where the money goes. But the US Treasury Department’s Office of Foreign Assets Control has made a rule that Tornado Cash’s code is not allowed to be used.
The people behind Ordinals Finance used another tool called “ownerRewithdraw” to take out the rest of the OFI tokens – 13 million OFI. This tool let them transfer all the tokens that people had invested in the platform.
When Ordinals Finance took the money and ran, there were 1,287 people who owned tokens from the platform. This information was found by CertiK. At the same time, data from a company called DappRadar showed that there were 797 different people who had used the platform in the last month.
On April 24th, CoinMarketCap said that the value of OFI tokens had gone down by 95%. The new price was $0.000112. At one point, the tokens had been worth much more – up to $0.006234. But since the middle of April, their value had been going down.
Ordinals Finance is a platform where people can lend and borrow Bitcoin inscriptions. However, it’s important to know that the platform is not actually connected to Bitcoin Ordinals, even though they use the same type of inscriptions.
The situation with Ordinals Finance doesn’t have anything to do with Bitcoin Ordinals itself. Bitcoin Ordinals lets people create special types of tokens called “non-fungible tokens (NFTs).” This part of their business is still working as normal and hasn’t been affected by what happened with Ordinals Finance.
Ordinals Finance wanted to use the Bitcoin network in the future, but first they made their own token called OFI and put it on Ethereum.