DeFi
Arbitrage-Based DeFi Project Reportedly Performed Million Dollar Mat Mining
Chibi Finance, an Arbitrum-based DeFi project, reportedly conducted a rug pull, taking around $1 million in user deposits. The team disappeared, using Tornado Cash to hide transactions, highlighting the need for caution and research in the DeFi space.
Chibi Finance completes million dollar rug draw
The carpet fits into the Decentralized Finance (DeFi) space is inevitable. The most recent incident involves Chibi Finance, an Arbitrum-based DeFi project that reportedly took in around $1 million in user deposits.
Security experts at PeckShield conducted an on-chain analysis, revealing that 555 ether (ETH) had been withdrawn from Chibi Finance liquidity pools. The project team would have withdrawn tokens staked by users, converting them to ether and linking funds from the Arbitrum network to Ethereum.
According to Peckshield, the team used Tornado Cash, a popular Ethereum mixing service, to hide traces of the transaction.
To add to the suspicions, the Chibi Finance team disappeared overnight, deleting their social media accounts and making their website inaccessible. The Project has remained silent, refusing to comment on the allegations.
This incident highlights the importance of conduct in-depth research and exercise caution when participating in DeFi projects. While the promises of decentralized finance are exciting, users should remain vigilant and examine the credibility and track record of the projects they engage in. Only by fostering a culture of trust and accountability can the DeFi space mature and thrive.