Observers claim that BlueMove drained the Sui liquidity pool and lost more than 700,000 SUI

Multiple liquidity pools in the Sui blockchain were emptied, and the community accused BlueMove of having backdoor vulnerabilities.

On July 11, the liquidity pools of multiple tokens on the Sui blockchain were cleared, triggering community concerns about so-called backdoor vulnerabilities. The affected pool is mainly related to BlueMove, a decentralized exchange within the Sui ecosystem.

Community accuses BlueMove of draining the pool

Quantum Void Labs founder Tyler Simpson (@quantumvoidlabs) expressed shock at the incident and actively called for attention on social media. He pointed out that BlueMove has withdrawn the total lock-in value of all liquidity pools on the exchange, with an estimated loss of more than 700,000 SUIs. Simpson described the aftermath as "the chart was destroyed and the pool was completely exhausted."

Simpson then further explained that all tokens issued through BlueMove and its MovePump Launchpad were affected, and the balance in each pool dropped to zero. He also emphasized that the losses were mainly for memin and small projects that used MovePump binding curve contracts to establish liquidity. In the hours leading up to the incident, Simpson had accused BlueMove of draining pools that platforms and communities believed had been locked out. According to Simpson, all tokens on BlueMove DEX-that is, all tokens issued through MovePump Launchpad-are affected, and liquidity in each pool is pulled to zero.

(Note: Sui blockchain is an emerging Layer-1 blockchain developed by Mysten Labs to provide high throughput and low latency for decentralized applications, competing with networks such as Solana.)

On-chain evidence and response

Defimon Alerts, an account that focuses on blockchain monitoring, discovered a chain message mentioning a drained BlueMove pool with a valuation of approximately $400,000. The message proposed a "white hat" solution, recommending that the responsible party retain 30% as a reward and return the remaining 70% to the designated Sui address within 48 hours. The sender warned that if the requirements were not met, legal proceedings and recovery processes would be initiated. The message on the chain read: "You drained the BlueMove DEX pool (about $400,000). Keep 30% as a white hat reward and return 70% to our Sui address within 48 hours..."

Other community members have also noticed a similar trend. X user @ saksidasaksi reported that BlueMove is removing the liquidity pool from its platform and noted that available liquidity has dropped significantly in the project Beeg Blue Whale, which relies on the MovePump contract. The user also claimed that BlueMove "stopped developing long ago" and is now withdrawing liquidity from projects that thought tokens were safe.

Backdoor Allegations and Project History

Simpson claims that BlueMove itself introduced a backdoor mechanism through a contract upgrade performed on May 31. He said that the upgrade will be executed by the party holding the upgrade cap (the authority in Sui smart contract management that controls contract modifications). Simpson describes a new function for refunds to add liquidity, and a dual casting mechanism that inflates LP tokens. The upgrade was immediately made immutable, locking in the changes. Defimon Alerts expressed similar concerns, noting that backdoor reports have surfaced, with damage estimated at between $400,000 and $550,000, plus the 700,000 SUIs reported by Simpson.

BlueMove's recent activity is similar to the pattern in August 2023: at that time, the project terminated operations on the Sei network due to poor transaction volume and required users to remove NFT within 72 hours. As of press time, the team has not yet publicly responded to the latest allegations.

Simpson also criticized Sui's overall environment, saying that mainweb developers Mysten Labs and the Sui Foundation marginalized most projects, leaving only a few projects such as WAL and DEEP. In his latest tweet, Simpson said he had warned Sui network stakeholders three times about the potential risks of BlueMove.

BlueMove is a decentralized exchange built based on the Sui blockchain. Since its establishment, it has provided multiple DeFi protocols and Launchpad services for Sui tokens. Currently, BlueMove has not issued any official statement or remedial plan in response to these allegations and the damage caused.