Chibi Finance team on Arbitrum conducts a $1 million rug pull

The developers of the DeFi project Chibi Finance on the Arbitrum network were suspected of conducting a rug pull. From the platform’s liquidity pools, 555 ETH belonging to users were withdrawn, according to PeckShield.

It seems that @Chibi_Fi (https://t.co/NjlcRCYS6D) was just rugged. The stollen funds are transfered to @TornadoCash (555 $ETH).#rugpull #laundering pic.twitter.com/0j65Sa9fyD

— BLIN Analytics (@BlinAnalytics) June 27, 2023

Experts found that the attackers directed the funds to Tornado Cash.

The project team representatives shut down the project’s website as well as its Twitter and Telegram accounts.

According to DEX Screener, CHIBI price slumped to $0.018. In 24 hours the asset lost 98.7% of its value.

Some members of the crypto community criticized the DeFi_Mochi user for shilling the project.

care to explain why you shilled something that rugged again? @defi_mochi pic.twitter.com/64EVGRUHcU

— hedgedhog (@hedgedhog7) June 27, 2023

Earlier in May, the Swaprum DEX team was suspected of an exit scam worth $3 million.