$1 Million Drained From Chibi Finance’s Liquidity Pool In What Seems To Be A Rug Pull

Chibi Finance, a yield-optimization protocol built on the Arbitrum chain has disappeared after taking around $1 million of user funds from its liquidity pools. By far, this incident is the twelfth Arbitrum mission to scam its customers within the final six months.

The rug pull operation was executed by deploying a malicious contract that enabled the developers to seize funds from the protocol’s smart contract. The said contract was initially funded by way of a 10 ETH withdrawal on Twister Money. After that, the CHIBI deployer gave the malicious contract the “_gov” position to get admin privileges on a pc community that enabled the contract to execute the “panic” operation on the protocol Then, the contract moved to stolen crypto again to the EOA tackle.

The stolen funds were sold for 555 ETH and were transferred to Tornado Cash, a decentralized exchange. Due to this, CHIBI tokens went down by 98% a few hours after the rug pull and its Twitter account and website are nowhere to be found.

The coin opened trading at $1.62 less than 24 hours ago and as of this writing, CHIBI’s price is at $0.00957537 at this time of writing.

According to a blockchain security firm Beosin, losses from rug pulls and exit scams in the market outweighed those from DeFi attacks in May. There were six rug pull incidents recorded in May, which resulted in a loss of around $45.02 million while DeFi protocol hacks amounted to a loss of around $19.7 million.

To avoid being a victim of these crypto scams, investors should be more aware and do their diligence before putting their funds in the cryptocurrency market.