Users claimed CertiK’s alert was unwarranted — subsequently, the project collapsed.

A blockchain security company attempted to alert users about a potential rug pull related to a cryptocurrency project, but investors reacted with anger and retaliated. The firm subsequently withdrew the security warning. Following this, the project it had labeled as a rug pull ceased operations.

This narrative involves CertiK, a blockchain security firm striving to fulfill its responsibilities, the users who opposed its actions, and the project, Crypto Cars, that seemingly abandoned its users.

In 2022, CertiK issued a “rug pull” warning for a Vietnamese Web3 gaming initiative known as “Crypto Cars,” which claimed to have over 700,000 users. At that time, the project’s native token was experiencing a steep decline in value, its website was temporarily inaccessible, and its developers announced they would not be responding on Telegram due to the Lunar New Year holiday observed in Vietnam. Given the circumstances, the alert seemed justified—until frustrated community members pressured CertiK to retract its announcement. However, when Cointelegraph sought to follow up with the project on August 1, 2023, it had already closed down.

Screenshot of CertiK’s rug pull alert on Crypto Cars in 2022. Source: Twitter

CertiK had earlier cautioned investors against engaging with the nonfungible token “racing-based play-to-earn” initiative. The firm announced on Twitter that it had identified the project as a “rug pull” and noted that its website and Telegram channel had been taken offline.

Despite its intentions, users quickly targeted CertiK, contending that the community alert issued by the on-chain security firm was “false.” Community members pointed out that the project’s website remained operational and its Telegram account was still active. Succumbing to a mix of pressure and what appeared to be valid evidence at the time, the blockchain security firm retracted its rug pull alert, labeling it a “false alarm.”

One of the final statements posted on Crypto Cars’ Telegram before its shutdown. Source: Telegram

After retracting the alert, CertiK explained the rationale behind their warning, citing the Telegram account and website going offline and the funds “dropping to zero.” The security firm also informed Cointelegraph at that time that incident reporting is conducted rapidly to keep community members informed about any suspicious activities, justifying its “mistake.”

Related: BALD token developer denies rug pull as price falls 85% post-launch

The retraction also drew criticism from the community. One individual described the alert as “murderous.” The Twitter (now known as X) user expressed curiosity about how long CertiK monitored the situation before reaching its conclusion, suggesting that the firm acted hastily without ensuring the accuracy of its analysis.

CertiK being criticized for the rug pull alert on Crypto Cars. Source: X

The project now seems to be entirely abandoned. Although CertiK retracted the rug pull alert over a year ago, the project has recently engaged in actions typical of “rug pull” projects—deleting its Telegram account and even rebranding its Twitter to a completely different initiative called EtherBank. Furthermore, the project has removed the images of its team members from its barely functioning website.

According to the information available on CoinMarketCap, which has stopped tracking the project’s CCAR token, Crypto Cars was developed by a team of Vietnamese developers led by Ly Tran, who claimed to be a full-stack web and mobile app developer. The chief technology officer, An Nguyen, was also identified as a mobile developer specializing in iOS, Android, and BlackBerry. However, the developers appear to have erased all traces of their presence online.

Crypto Cars team members on the website back in 2021. Source: The Wayback Machine

At the time of writing, the section displaying the project’s executives has been removed from the site. In addition to the website, the team members have seemingly vanished from various other online platforms. Founder and CEO Tran—along with team members Nguyen, Da Mach, and Mai Dang—can no longer be located on LinkedIn or other social media channels.

While many wish to enjoy the benefits of cryptocurrency, one might ponder: Are regulators justified in believing that investors require protection from their own avarice?

Cointelegraph editor Zhiyuan Sun contributed to this story.

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