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* * @link https://developer.wordpress.org/themes/basics/template-files/#template-partials * * @package CoverNews */ ?> Arbitrum-Based DeFi Project Chibi Finance Rug Pulled: Over $1 Million Drained – CoinsMegaNews

Arbitrum-Based DeFi Project Chibi Finance Rug Pulled: Over $1 Million Drained

2 years ago CryptoExpert
Arbitrum-Based DeFi Project Chibi Finance Rug Pulled: Over $1 Million Drained

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In yet another case of a rug pull, Arbitrum-based Chibi Finance reportedly siphoned more than $1 million worth of various crypto assets. Notably, the protocol went live on Tuesday, but the developers managed to launder the stolen funds to other networks shortly after.

On-chain analysis conducted by blockchain security platform CertiK revealed that Chibi devs deployed a malicious contract that enabled them to steal user funds from the protocol’s smart contracts.
These funds were then sold for 555 Ether and transferred from Arbitrum to Ethereum on the same day, as per another security firm PeckShield, before being funneled to the coin mixing service Tornado Cash to conceal transaction trails.
Following the rug pull, Chibi Finance’s Twitter and Telegram profiles were disabled, and the website was deleted.
CertiK said that the latest exit scam is the 12th incident the platform recorded on Arbitrum in 2023.
A series of exit scams have emerged on Arbitrum as well as the wider Ethereum Layer 2 ecosystem recently, with the most recent being Swaprum.
As reported earlier, the developers behind the decentralized exchange drained $3 million worth of Ether from the protocol.
A recent report by Beosin revealed that the total amount of crypto assets lost to exit scams and rug pulls exceeded the amount pilfered from decentralized finance projects through exploits and attacks last month.
More than $45 million of crypto assets were stolen via rug pulls in May across six incidents, while other exploits in DeFi amounted to $19.6 million.

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