Anonymous Whitehat Posts On-Chain Analysis Pointing at Stolen Rabbit Finance Funds

Rabbit Finance faces user frenzy following the second major accusation in less than 10 days.

By
Kyle Heise
on
July 22, 2021
Category:
BSC News

Caught Red Handed?

Rabbit Finance has been credibly accused of embezzling or misusing almost $700,000 worth of tokens. In a lengthy exposé published through Medium on July 22, an anonymous developer detailed a litany of worrisome findings related to hot wallets connected to the Rabbit team.

The wallets appear to have received funds that Rabbit reserved for token burns and the accounts may have helped fuel “pump and dumps” of the Rabbit token.

Source


The news is concerning coming from a project that preaches security and was supposedly audited by Certik and Chains Guard, two reputable blockchain security auditors. The accusations are strong and appear legitimate. This has users of the Rabbit Finance Telegram up in a frenzy and looking for answers as the token price fell around 10%, according to CoinMarketCap

A post in the Rabbit Telegram group
“Rabbit Finance has lied to users and on their docs, and used those lies to steal funds,” read the analysis report. “While they said the platform fees would indirectly belong to RABBIT [token] holders, redistributed through buybacks and burns, the Rabbit team was stealing the tokens behind the backs of users.”  


The Community Response

The news surrounding Rabbit is currently filled with fear, uncertainty, and doubt (FUD), and users are right to feel so. The anonymous dev account has come forward now a second time to reveal a major discrepancy with Rabbit Finance––the first warned users of a potential rug pull based on comments from a Chinese influencer. 

The Rabbit Team has confirmed to BSC.News that there will be an official response within 24 hours. A salient response will be crucial for the Rabbit team to quell the FUD and regain trust. Trust is an extremely important issue in the crypto world and unfortunately, Rabbit Finance is giving users the stick, not the carrot. 

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Kyle Heise

Born and raised in the East Bay of California. He has studied and worked on three continents and lived in eight countries. Kyle resides in San Francisco. Go Giants!

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