ARB

Chibi Finance: Arbitrum-Based DeFi Project Allegedly Performs $1M Rug Pull

by BSC News

June 27, 2023

chain

Chibi Finance, an Arbitrum-based DeFi project, allegedly carried out a rug pull, taking around $1 million in user deposits. The team vanished, using Tornado Cash to hide transactions, emphasizing the need for caution and research in the DeFi space.

Chibi Finance Performs $1M Rug Pull

Rug pulls in the Decentralized Finance (DeFi) space are inevitable. The most recent incident involves Chibi Finance, an Arbitrum-based DeFi project that allegedly made off with approximately $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's team reportedly withdrew tokens staked by users, converting them into ether and bridging the funds from the Arbitrum network to Ethereum. 

According to Peckshield, the team utilized Tornado Cash, a popular Ethereum mixing service, to hide traces of the transaction. 

Adding to the suspicion, Chibi Finance's team disappeared overnight, deleting their social media accounts and rendering their website inaccessible. The project has remained silent, refusing to comment on the allegations.

This incident highlights the importance of conducting thorough research and exercising caution when participating in DeFi projects. While the promise of decentralized finance is exciting, users must remain vigilant and scrutinize 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.

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