BlueMove liquidity pools on the Sui blockchain were drained on July 11, prompting onchain observers to accuse the decentralized exchange team of using a planted backdoor to remove funds.
Several affected pools supported tokens launched through MovePump, a bonding-curve launchpad used by smaller and older meme projects within the Sui ecosystem.
Observers said the pools were emptied, leaving token charts damaged and liquidity reduced to zero. The allegations focus on pools linked directly to MovePump token launches.
Tyler Simpson details alleged exploit
Tyler Simpson, founder of Quantum Void Labs and known online as @quantumvoidlabs, said BlueMove “pulled all of the TVL in every single pool.” He estimated losses above 700,000 SUI and wrote that “charts are destroyed pools drained entirely.”
Simpson first raised the alarm late on July 11, alleging that BlueMove had drained pools described as locked. He later added, “All tokens on BlueMove DEX — aka, any token launched on MovePump Launchpad. All pools were drained to $0.”
Defimon Alerts also highlighted an onchain message referring to a drained BlueMove pool worth about $400,000. The message offered the recipient a 30 percent white hat bounty if 70% of the funds were returned within 48 hours.
The sender warned that legal and recovery measures would follow if the funds were not returned to the listed Sui address.
MovePump projects report liquidity losses
An X user posting as @saksidasaksi said BlueMove was removing liquidity pools from its application. The account added that the Beeg Blue Whale project stored its main liquidity in the MovePump contract and had recorded a sharp decline in available liquidity.
In a later post, the same account said BlueMove “stopped development a long time ago” and was now removing pools that projects had treated as locked.
The affected assets were tokens that launched and bonded through the MovePump curve. Reports from observers placed the losses between about $400,000 and $550,000, while Simpson separately cited more than 700,000 SUI.
Upgrade linked to double-mint function
Simpson wrote, “BlueMove team shipped the backdoor themselves.” He tied it to a May 31 upgrade controlled through the upgrade cap. He shared the related transaction block and said a version he identified as v12 added a function that returned deposited liquidity alongside a double-mint mechanism for LP tokens.
He also said the package was made immutable immediately after the upgrade. Defimon Alerts separately noted reports of a backdoor.
BlueMove previously announced in August 2023 that it would stop operating on the Sei Network within 72 hours, citing trading volume below expectations and asking users to delist NFTs.
Simpson said he had warned the Sui network about BlueMove three times. BlueMove had not yet issued a formal response to the accusations at publication.
