Chibi Finance Executes $1M Rug Pull

Crypto Daily
Crypto Daily

27 Jun 2023 4:00 PM

The scam was orchestrated using a malicious contract set up by the original deployer of Chibi Finance....

  • Chibi Finance, an Arbitrum-based yield farming optimizer, conducted a major exit scam, resulting in the theft of approximately $1 million worth of tokens.
  • The developers gained control of the platform's smart contracts and used a malicious contract to steal users' funds.
  • The stolen assets were swapped for ETH and laundered through Tornado Cash.
  • The CHIBI token price dropped by 98% after the scam, and Chibi Finance deactivated its Twitter account and official website.
  • Scams on the Arbitrum network have resulted in over $14 million lost in 2023 alone, highlighting the need for increased security measures in the DeFi space.

The article describes a fraudulent exit scam conducted by Chibi Finance, resulting in the theft of users' funds and a significant drop in the CHIBI token price. It highlights the growing concern of scams on the Arbitrum network and emphasizes the importance of due diligence and security in the DeFi space.

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You May Ask

What is Chibi Finance and what type of scam did it conduct?How did the developers of Chibi Finance steal users' funds?What assets were stolen and how were they laundered?What were the consequences of the scam for CHIBI token holders and Chibi Finance's online presence?Why is there a growing concern about scams on the Arbitrum network and what precautions should potential investors take when investing in DeFi projects?

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