Chibi Finance, a recently launched DeFi project on layer 2 network Arbitrum, has been accused of “Rug Pull” by fleeing around $1 million in user deposits.
On-chain analysis by security analysts at PeckShield. showthat 555 ether (ETH), which is equivalent to $1 million, was drained from the platform’s liquidity pool.
The team behind Chibi Finance withdrew the tokens that users staked on the platform and converted them to Ether. The money was then transferred from the Arbitrum network to Ethereum and through Tornado Cash, a popular transaction masking service used to “cryptocurrency”. This obfuscates transaction paths, according to PeckShield.
In the midst of all these movements, the Chibi Finance team vanished overnight. by social media accounts on Twitter and Telegram, as well as the project’s website. chibi.finance no longer accessible
meanwhile The price of chibi tokens, which were around $1 yesterday. rapidly fallingleftOnly $0.0096 according to DEX Screener
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