DeFi
Arbitrum-Based DeFi Project Reportedly Completes $1 Million Rug Pull
Chibi Finance, a DeFi project based on Arbitrum, reportedly conducted a rug pull, taking around $1 million in user deposits. The team disappeared, using Tornado Cash to mask the transactions, highlighting the need for caution and research in the DeFi space.
Chibi Finance Holds $1 Million Raffle
The carpet pulls in the Decentralized Finance (DeFi) space is inevitable. The most recent incident involves Chibi Finance, an Arbitrum-based DeFi project that reportedly took in around $1 million in user deposits.
Security experts at PeckShield conducted an on-chain analysis, revealing that 555 ether (ETH) had been drained from Chibi Finance’s liquidity pools. The project team reportedly withdrew the tokens staked by users, converting them to ether and transferring the funds from the Arbitrum network to Ethereum.
According to Peckshield, the team used Tornado Cash, a popular Ethereum mixing service, to hide the transaction traces.
Adding to the suspicion, the Chibi Finance team disappeared overnight, deleting its social media accounts and making its website inaccessible. The project has remained silent, refusing to comment on the allegations.
This incident highlights the importance of conduct in-depth research and exercise caution when participating in DeFi projects. While the promises of decentralized finance are exciting, users should remain vigilant and examine the credibility and track record of the projects they engage with. Only by fostering a culture of trust and accountability can the DeFi space mature and thrive.