Another rug pull has arisen in the crypto space. Chibi Finance, an Arbitrum-based DeFi project, reportedly stole $1 million worth of various crypto assets. The protocol event just went live on June 27, the stolen funds were laundered and transferred to other networks shortly after.
On-chain analysis conducted by blockchain security platform CertiK has revealed that the developers behind Chibi deployed a malicious contract that allowed them to steal users’ funds from its smart contracts.
As reported by another security firm PeckShield, the stolen tokens were then sold for 555 Ether and transferred from Arbitrum to Ethereum the same day before being transferred to the mixer Tornado Cash to mask their transactional activity.
After the rugpull, Chibi Finance’s Twitter and Telegram accounts were disabled and its website was also deleted. CertiK said that this rugpull is the 12th incident the platform has recorded on Arbitrum in 2023. Recently, a series of similar scams have happened on Arbitrum as well as other Layer-2 Ethereum ecosystems. The most recent was Swaprum in which developers stole $3 million worth of Ether from the protocol.
A recent report by Beosin revealed that the total amount of crypto assets stolen as a result of exit scams and rugpulls has surpassed the amount stolen from decentralized finance projects through exploits and attacks last month. More than $45 million in crypto assets was stolen through six rugpulls in May, while the figure for other exploits/hacks in DeFi was $19.6 million.