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

In another coin toss case, Arbitrum-based Chibi Finance allegedly siphoned off over $1 million from various crypto assets. Notably, the protocol went live on Tuesday, but the developers managed to launder the stolen funds to other networks soon after.

• On-chain analysis performed by the blockchain security platform CertiK revealed that the Chibi developers deployed a malicious contract that allowed 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, according to fellow security firm PeckShield, before being routed to coin-mixing service Tornado Cash to conceal transaction trails.
• Following the draw, Chibi Finance’s Twitter and Telegram profiles were deactivated and the website was taken down.
• CertiK said the latest exit scam is the platform’s 12th incident on Arbitrum in 2023.
• A series of exit scams have recently emerged on Arbitrum as well as the broader Ethereum Layer 2 ecosystem, the most recent being Swaprum.
• As previously reported, the developers behind the decentralized exchange drained $3 million worth of Ether from the protocol.
• A recent report from Beosin found that the total amount of crypto assets lost to exit scams and rug draws exceeded the amount stolen from decentralized finance projects through exploits and attacks. last month.
• More than $45 million in crypto assets were stolen via rug pulls in May in six incidents, while other exploits in DeFi amounted to $19.6 million.