Arbitrum-Based DeFi Protocol Chibi Finance Rug Pulled
When you think about Decentralized Finance (DeFi) protocol, you might think that's more secure. Hackers can hack DeFi protocol taking advantage of the vulnerability of the protocol. Or, the intention behind building a specific DeFi protocol can be scamming people and stealing their cryptocurrency.
Arbitrum-based DeFi protocol Chibi Finance rug pulled and drained more than $1 million. You will be surprised to know that Chibi Finance exit scam is the 12th incident on the Arbitrum platform in 2023. It's been only six months. It is shocking, so how many scams and rug pulls do we have to see for the rest of this year?
According to blockchain security firm CertiK's analysis, Chibi Finance developers deployed a malicious contract. And this malicious contact lets them steal user funds from the protocol smart contacts. This DeFi protocol's native token CHIBI price crashed by almost 99%.
After stealing the funds, they converted them into 555 ETH and moved ETH from Arbitrum to the Ethereum blockchain. Then the stolen funds have been sent to the crypto mixer Tornado Cash. They do not want to get caught in anyhow.
Chibi Finance Twitter account was deleted and the Telegram profile was disabled. Not only that, their website also disappeared. It was claimed that the Arbitrum-based DeFi protocol Chibi Finance was audited by blockchain security firm SolidProof. It gives a good impression and people think that's safe and secure.
They promoted their DeFi protocol heavily. Many influencers were busy promoting this protocol. That created hype in the community. People could do crazy things out of FOMO. When the DeFi protocol rug pulled, crypto influencers deleted the tweets. There were posts associated with Chibi Finance, they deleted those posts as well.
Due to the rise of crypto scams and hacks, it become more difficult to identify scam projects. Do not put your money into any crypto project without doing proper research and analysis. If any crypto project turns into a scam, probably it was a scam from the beginning. Victims figure out that when it becomes too late.
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