BlueMove Sui Liquidity Pools Drained in Suspected Insider Backdoor Heist

The decentralized exchange BlueMove on the Sui blockchain allegedly drained its liquidity pools in a suspicious manner. Tyler Simpson, founder of Quantum Void Labs, called out BlueMove for pulling all TVL (Total Value Locked) from every single pool, citing losses exceeding 700,000 SUI.

Simpson warned that charts are destroyed and pools were drained entirely, suggesting a premeditated plan to empty the funds. This incident has sparked concerns about the security and trustworthiness of BlueMove's operations.

Another onchain monitoring account, Defimon s, referenced an onchain message where someone claimed to have drained a BlueMove pool worth approximately $400,000. The message asked for 30% as a 'white hat bounty' in exchange for returning the remaining 70% within 48 hours.

The tokens affected were those that launched and bonded through MovePump curve, a bonding-curve launchpad used by smaller projects on Sui. An X user, @saksidasaksi, stated that BlueMove was removing liquidity pools from its app and stripping out pools that projects had treated as locked.

The incident raises questions about whether BlueMove knew about the backdoor that drained LPs. Simpson claimed that the team shipped the backdoor themselves, citing a version of the package (v12) that added a function for returning added liquidity along with a double-mint mechanism that inflated LP tokens.