According to Cointelegraph: The price of Synapse's (SNY) native token experienced a significant drop on September 5th after an unknown liquidity provider dumped nearly 9 million SYN tokens and removed all stablecoin liquidity from the cross-chain bridge. The official X account for Synapse acknowledged the liquidity rug pulled by the unidentified provider, asserting that the Synapse bridge did not suffer any security breach.
After further investigation, the unknown liquidity provider was traced back to Nima Capital, a long-term capital partner of the project. The venture capital firm had previously received a grant from the project to lock $40 million worth of liquidity in SYN. Etherscan data reveals that the unknown party that dumped the SYN tokens had received 10 million SYN ($3.4M) from the "Synapse: Executor 2" wallet on April 5th. The wallet currently holds no SYN tokens.
Nima Capital reportedly rug pulled its users just eight months before the agreed governance proposal, as the company's website went offline and the project locked its X (formerly Twitter) account, vanishing from the online scene. While rug pulls are common in the DeFi ecosystem, it is unusually rare for a VC firm to be implicated. The SYN token's price fell more than 20%, reaching a multi-week low of $0.30 before recovering to over $0.35 later in the day.
DeFi bridges, renowned for making interoperability more accessible among different protocols, are often prime targets for exploiters. Several major DeFi hacks have occurred on these cross-chain bridge protocols.
