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Palmswap

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Summary

Palmswap was a decentralized perpetual futures exchange built on BNB Chain (Binance Smart Chain), launched in 2022 and offering up to 50x leverage trading via its PALM governance token and PLP liquidity provider token. On July 24–25, 2023, the protocol suffered a flash loan price manipulation exploit that drained approximately $901,455 USDT from its liquidity vault due to a critical smart contract logic flaw in the PlpManager contract. The exploiter ultimately returned $721,450 of the stolen funds after bounty negotiations, but the protocol's liquidity partner Gotbit was subsequently indicted and convicted by US federal prosecutors for market manipulation and wire fraud, raising additional integrity concerns about the project's ecosystem.

Connected Entities

5 entities · 60 linked investigations
Relationships
  • Gotbit Consulting LLCmentioned withGotbit(70%)
  • ZachXBTmentioned withBinance(60%)
  • Gotbitmentioned withBinance(60%)
  • Gotbitmentioned withZachXBT(65%)
  • Palmswapmentioned withBinance(70%)
  • Palmswapmentioned withZachXBT(70%)
  • Palmswapmentioned withGotbit(70%)
  • Gotbitmentioned withGotbit Consulting LLC(80%)
  • Palmswapmentioned withGotbit Consulting LLC(80%)
Have evidence about Palmswap?

Timeline(12 events)

20 September 2022

Palmswap holds community fair launch, raising over 6,600 BNB from participants.

CryptoNews

25 October 2022

PALM token reaches its all-time high price of approximately $0.1505.

CoinMarketCap

27 June 2023

Palmswap publicly announces partnership with Gotbit Hedge Fund to provide liquidity for V2 launch. Gotbit mints and auto-stakes PLP tokens as part of the launch event.

CoinTelegraph Press Release

24 July 2023

Flash loan exploit begins. Attacker uses 3,000,000 USDT flash loan to exploit a price calculation flaw in the PlpManager contract, draining approximately 901,455 USDT from Palmswap's liquidity vault.

CertiK Incident Analysis

25 July 2023

SlowMist publishes independent on-chain analysis confirming the exploit mechanics and total loss of over $900,000.

SlowMist via Medium

25 July 2023

Palmswap team acknowledges the exploit publicly and initiates contact with the attacker's wallet address to negotiate a bounty.

Binance Square

31 July 2023

Exploiter returns $721,450 to Palmswap following bounty negotiations, retaining approximately $179,505 as an alleged bounty. Roughly 20% of stolen funds are not recovered.

Binance Square

19 November 2023

Palmswap holds V2 community update AMA. Team states that user refunds are pending a 'lengthy legal process' and that repayment in USDT is planned but 'nothing final has been determined.' Roadmap for Q1 2024 features announced.

Palmswap via Medium

9 October 2024

US DOJ and SEC announce charges against Gotbit Consulting LLC and its founder Aleksei Andriunin for market manipulation and wire fraud conspiracy. Gotbit had been Palmswap's liquidity partner.

SEC Press Release

March 2025

Gotbit founder Aleksei Andriunin pleads guilty to wire fraud and conspiracy to commit market manipulation in US federal court in Boston.

DOJ District of Massachusetts

June 2025

Gotbit founder Aleksei Andriunin sentenced to eight months in prison and one year of supervised release; company agrees to forfeit $23 million.

DOJ District of Massachusetts

May 2026

Palmswap protocol is effectively defunct. Website offline, PALM token trades at approximately $0 with no volume, DappRadar lists the protocol as inactive, and no team communications have been issued.

DappRadar
Provenance & Audit Trail

Decision Log

This investigation is cryptographically anchored to the Solana blockchain (1 event). 15 of 17 cited source URLs have an Internet Archive snapshot.

model: claude-sonnet-4-6

generated: 5/4/2026, 2:54:40 AM

last updated: 8/29/2026, 1:32:54 AM

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